The weeks fly by, and finally, we were reminded of what genuine warmth feels like! We hope you are looking forward to a fantastic summer, regardless of whether you plan to travel or stay at home.
The recent macroeconomic situation has brought challenges for society as a whole as well as for individuals. However, now we are beginning to see signs of improvement. The government has noted multiple times this year that Sweden's economy is heading in the right direction. This has been demonstrated, among other things, by the policy rate - the interest rate decided upon by the Executive Board of the Riksbank - being lowered in May. Previous projections have indicated that the nation's inflation rate will continue to decline.
What does this mean for us as individuals?
Despite the fact that the recession is still ongoing, there are a number of reasons to see the development favorably from the standpoint of personal finances.
The policy rate affects how much it costs the banks to borrow and invest money, which also controls the interest you have on your personal loans. This primarily applies to variable-rate loans, such as mortgages, car loans and credit card costs. A lowered policy rate will therefore in the long run result in lower loan costs and reduced household expenses. In addition, it increases the ability and willingness of banks and other market players to issue loans, both to businesses and private individuals.
The reduced inflation will slow down the long-term price increase for goods and services. This will give us, the consumers, more purchasing power and extra money in the household, which is certainly welcomed regardless of whether we plan to invest, pay off debts or do that home renovation we've been putting off for far too long!
We at SaveLend are excited about summer and everything it brings: vacations, sunshine, and leisure. Our business continues as usual without interruption and we are here to help.
Have a great summer! ☀️
Here we present as usual the total average return for Balanced and Yield from June 2023 to May 2024. The Balanced savings strategy has delivered an average return of 7,12% for the first twelve months and Yield has delivered 8,10% accordingly.
During these days, the Swedish Tax Agency pays out refunds to those who have made changes or additions to their declaration. Are you one of them? Congratulations in that case! If you have not yet decided what to do with the money, or plan to use it at a later date, our savings strategies may be a good option. We have three different strategies based on your savings horizon and your individual needs. Read more!