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DNB is the first major bank to raise interest rates on mortgage loans and deposits by 0,50 percentage points. Traditionally, banks in the country follow the central bank's decision when interest rates rise. Norges Bank decided to double down increase in interest rates, which represents an increase of 0,5 percentage points last Thursday, bringing the overall rate to 3,75 percent.
DNB follows the decisions of Norges Bank
The bank raises interest rates for mortgage loans and deposits by 0,50 percentage points. Based on Norges Bank's decision to increase the interest rate on June 22. DNB has set interest rates for mortgage loans and deposits, says Ingjerd Blekeli Spiten, leader at DNB. The new rates apply from June 27 for new mortgage loans and deposits, and from August 7 for existing mortgage loans and deposits - in the case of a bank.
. DNB profits at a high level
DNB gains from a growth boost after a series of interest rate hikes. The bank has not earned more from customers for at least the last 15 years. In calculating how Norges Bank raises interest rates, banks also raise interest rates for mortgages and deposits. This brought them more growth. In the first quarter, DNB generated a record 14,6 billion net profits. Net profit as a result of how much the bank itself pays to borrow money and how much customers pay when they borrow from the bank, and this is the main source of income for the bank.
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Forecast of an increase in interest rates
The next interest rate hike is likely to take place in August. Interest rates could rise to 4,25 percent by autumn, predicts Norges Bank. The central bank now forecasts mortgage rates to rise to 5 percent.
