Upward pressure on Swedish mortgage rates goes beyond Riksbank decision
On 20 December 2018, the Swedish central bank (the Riksbank) will announce whether it will raise its primary policy rate, or repo rate, for the first time since July 2011. It is uncertain whether the rate hike will happen now given weak inflation figures, slowing domestic growth, ongoing Brexit negotiations and a growing consensus that the global economy is wavering. However, a recent 25 bps increase in three-month STIBOR could indicate that the market expects a hike.NCR believes that although a repo rate hike is likely to result in higher mortgage rates, as was the case after a September