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Norwegian banks announce mortgage interest rate hike

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The Local ([email protected])
Norwegian banks announce mortgage interest rate hike
It didn't take long for Norway's financial sector to respond to key interest rate change. Photo by: Nordea / Press

In response to Norges Bank's (Norway's central bank) recent increase in the key interest rate, Nordea and DNB are following suit by raising their interest rates on mortgages and deposits.

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Norway's central bank, Norges Bank, raised its key policy rate by 0.25 percentage points to 4.25 percent on September 21st.

As expected, it didn't take long for the financial sector to respond to key interest rate change.

READ MORE: What Norway’s latest interest rate announcement means for you

On Monday and Tuesday, DNB and Nordea, two major players in Norway's banking sector, announced they would adjust their interest rates.

DNB became the first major bank to raise mortgage and deposit interest rates (by up to 0.25 percentage points) on Monday.

Ingjerd Blekeli Spiten at DNB said, "Based on Norges Bank's decision to raise the key interest rate by 0.25 percentage points at the interest rate meeting on September 21st, DNB has decided to increase the interest rate on mortgages and deposits by up to 0.25 percentage points."

DNB also shared that their best floating interest rate for first-time home buyers in Norway would stand at 5.24 percent.

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On Tuesday, Nordea also announced an increase in interest rates on loans and deposits, with the changes set to take effect from November 27th.

"Norges Bank raised the key interest rate again on September 21st, and as a result, we have decided to increase the interest rates on loans and deposits," Randi Marjamaa at Nordea Norge said.

For both banks, the new interest rates for existing loans and deposits will be effective starting November 26th.

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