Norway’s DNB is to increase interest rates by 0.3 percentage points and it looks like more banks could follow their example, it announced in a stock exchange notice. Friday.
The Norwegian banking major’s Trond Bentestuen said mortgage rates would continue to increase in light of stricter bank capital requirements from both the Norwegian authorities and the EU.
“We’ve continued downsizing, cut and continue to axe the dividend on our profits. We also have to put up mortgage rates to achieve these new, stricter requirements,” he told VG.
Mr Bentestuen believes that interest rates could soon rise to between 0.5 and 0.8 percent, making a NOK 2 million mortgage NOK 6,000 more expensive than it is at the moment, gross.
Nordea and Handelsbanken currently have no plans to increase their interest rates, but add they do not regard the current rise as unnatural, and will continue to monitor the situation.