A decrease, albeit small

After 16 interest rate increases of 25 points (0.25%) over almost 2 years, our mortgage bank has decided to lower the interest rate by 5 points (0.05%), despite the fact that Sweden's central bank AKA Riksbanken has not lowered the policy rate.

Even if the cost reduction is negligible, it is always nicer to have a decrease than an increase in one's costs. Several experts believe that Riksbanken will lower the policy rate at the next monetary policy meeting, which will take place on 27 March 2024.

Personally, I don't think a cut in the policy rate will come until the August 20, 2024 meeting at the earliest, but I've been wrong before. The gap between the various experts' forecasts about the position of the policy rate at the turn of the year is large, all between 1.75%-3%.