News: The Fed triples interest rates again

The triple increase hits Swedish households

Of: 

 

Emil Forsberg 

 

Published: Today 19.00 

 

Updated: Less than 3 hours ago 

 

NEWS 

 

The Fed triples interest rates for the fourth time in a row to deal with rising inflation. 

 

The austerity measures are expected to hit American households hard - but also Swedish mortgage rates. 

 

- It will get more expensive before it gets cheaper, says Compricer's kick economist Christina Sahlberg in Aftonbladet TV 

 

The Federal Reserve on Wednesday approved an increase in the key interest rate by 0.75 percentage points. 

 

The interest rate now rises to between 3.75 and 4 percent, which are the highest levels since 2008. 

 

- It was expected and this is a clear signal that the Fed thinks it is important to get inflation under control. They are willing to continue raising quite heavily. The strongest in many years, says Compricer's kick economist Christina Sahlberg in Aftonbladet TV. 

However, the increase does not look like it will be the last. In order to bring down core inflation from levels above five percent down to the target of 2 percent, further measures are expected. 

Something that can also have an effect in Sweden, according to Christina Sahlberg. 

 

- I think this will cause the Riksbank to continue with its plans. We had a big increase in September by one percentage point, it is believed that there will be an increase on November 24 by 0.75 percentage points and that it will then peak next year at an interest rate of 2.5 percentage points. It is likely that the Riksbank will continue with its plan to curb our inflation, she says. 

 

"Keep the money" 

 

How does it affect private individuals? 

 

- I think most people who have not had fixed mortgage rates have noticed that it has become incredibly much more expensive. It has doubled for many and will increase even more before it hopefully goes down, says Christina Sahlberg and continues: 

 

- It is important that you review your finances and try to negotiate so that you have a good mortgage, review other expenses and keep some of your money. It will go down eventually, but maybe not to the low levels we had before. 

 

Fed chief Jerome Powell. Photo: Manuel Balce Ceneta / AP