Thursday, October 27, 2016

Therefore, Ingves interest rate is negative – for you – Svenska Dagbladet

Det, there was a time when minusräntan meant lower mortgage rate. It no longer applies. The interest rate is negative – and for households, it applies in a double sense.

Governor Stefan Ingves will leave the interest rate unchanged. Photo: Tomas Oneborg

A compact wall. This is what the banks are just now forming between the Riksbank’s repo rate and your mortgage loan.

We take it from the beginning. The riksbank’s low interest rates affect our interest rates, which may affect the bank’s cost of funding their loans to you. And these market rates have fallen dramatically and are now at a record low level. It is usually from the banks ‘ side of the hot to upplåningsräntorna, while it is around zero now, but that the total borrowing cost must be counted also the loans taken in the past to a higher rate of interest. May it be so. The bank borrows – thanks in part to the Riksbank – rekordbilligt.

the major Banks priskonkurrerar obviously no longer with their mortgages.

In theory, it should be, of course, mean lower mortgage rate. And some fell mortgage interest rates – until about a year ago to a level about 1.6. Then nothing happened. Have you been in contact with your bank the last time? Asked about lower interest rate? Met with disinterest? Threatened to change the bank – and was met with even more disinterest? That is Just it. The major banks priskonkurrerar obviously no longer with their mortgages. Bolånetagarna is adequate cash cows – the banks don’t lower more.

We can find that the repo rate therefore does not get more impact on your mortgage rate. Therefore, we are looking at what are the other ways you concrete affected by today’s interest rate announcement. Of course, then you’re affected indirectly by the effect of the repo rate have on the macroeconomy, and, by extension, employment and housing market. But for now, we focus on the direct importance of today’s unchanged minusränta have for your wallet.

The first obvious effect in the short term is of course that you continued to get zero interest on your savings account – it is the few that have been missed. The consequence of it, given our high propensity to still save money on the account of the major banks have, is that we will be collecting money on the high the value of the naggas on over time. It is because we actually have a little inflation, at least in consumer goods. And yes, many of us save to be able to consume any longer.”

So what happens when the government’s borrowing a day rises?

another negative. the effect is that the government seems to take minusräntan for the eternal and allows it to justify tax increases. At the end of the year, raised to the tax on endowment insurance accounts and investment savings accounts, ISK, with reference to the interest rate makes the tax so low. But the basis for the calculation of the tax is government borrowing, which of course is influenced by the repo rate. So what happens when the government’s borrowing a day rises? Then, the risk is that the tax on your savings, follow along on the journey upwards.

the tax Increase and nollräntan on your savings account, however, is nothing compared to the huge effect that minusräntan in the long term, can get on a different area. Your retirement savings.

Manager of your pension must according to the rules of the place a part of the capital in interest-bearing securities, and these have today a negative interest rate. And then what happens? It will shrink. This is done at the same time we have inflation is still ticking up on the goods that we as retirees can possibly consume in the future.

No one wants that household debt will increase even more.

the Riksbank continues with their purchases, and the vacuum thus, the market for government bonds. It makes it further. Pensionsförvaltarna must then seek other, more risky, interest-bearing assets. It can be about other types of bonds, for example, with real estate as the underlying asset. It is a shift that poses new types of risks. Pension funds are forced out into deep water, and what impact it can possibly get, it is in the day, nobody knows.

Stefan Ingves, or some politicians will not protest against the fact that you do not get a lower mortgage rate by the monetary policy conducted. No one wants that household debt will increase even more. But when the effects of the minusräntan on our pensions going up for the common man to learn the reactions become greater. Let us hope it will not be too late.


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