Lån og Spar expects ECB to raise rates again in December
TLT•Lån & Spar expects another ECB rate increase in December after the central bank held rates on October 29. Markets price in one further increase in 2026, while partial cuts are expected in 2027–28.
1. Rate outlook
Lån & Spar expects the ECB to raise rates again in December, following its October 29 hold despite rising inflation. The ECB raised rates by 0.25 percentage points on September 10, and markets price in one further increase in 2026; partial cuts are expected in 2027–28, with the outlook heavily dependent on resolution of the Middle East crisis. Long-term mortgage rates fell in October, with 4% amortizing mortgage bonds gaining about 1.5 price points and issuance shifting from 5% bonds. CITA 6 remained near 2.30%, leaving the F-kort reference rate broadly unchanged, excluding the surcharge.
