swedish Finance Minister Urges Public to Demand Lower Mortgage Rates From Banks
STOCKHOLM – Swedish Finance minister Elisabeth Svantesson has publicly challenged major banks for failing to fully pass on recent interest rate cuts to mortgage holders,urging citizens to directly contact their lenders and demand better rates. The call to action, delivered in an Instagram clip published Friday, comes as the Riksbank, Sweden’s central bank, continues to lower its policy rate.
Svantesson questioned whether the Riksbank’s rate reductions were intended to benefit bank profits, stating, “No, I don’t think so.” She highlighted that while the Riksbank has lowered rates throughout the year, four out of five major banks have not mirrored those cuts in mortgage rates to the same degree. “It’s remarkable,” she added.
The Riksbank announced a 0.25 percentage point reduction in the policy rate on Tuesday, bringing it to 1.75 percent, effective October 1st. Following the proclamation, Nordea, Swedbank, SEB, and Handelsbanken announced reductions to their three-month rates – each by 0.2 percentage points. Danske Bank followed on Thursday, reducing its three-month rate by 0.15 percentage points. SBAB, the state-owned mortgage provider, announced a 0.15 percentage point reduction to its variable rate on Friday, bringing it to 3.05 percent – the lowest listed rate for three-month mortgages.
Despite thes adjustments, Handelsbanken, Nordea, and SEB maintain a three-month interest rate of 3.84 percent, while Swedbank’s is 3.79 percent and Danske Bank’s is 3.74 percent.
svantesson emphasized the need for customer action, stating, “But it is indeed also required that you lift the handset and call and talk to your bank.” She also expressed frustration with the lack of openness in bank interest rate setting, noting the difficulty for consumers to compare rates - unlike readily visible price comparisons at gas stations.
