Further interest rate hikes expected in 2023

The many interest rate hikes introduced in 2022 are likely to continue this year.

And this is unlikely to be a temporary trend, Árni Ellefsen, CEO of BankNordik.

“We should to some extent learn to live with higher interest rates. The days of historically low rates, at times negative rates, are unlikely to come back anytime soon.”

 >> SEE ALSO Banks raise interest rates again

Lending rates in Faroese banks saw an average increase from 2.9 percent in August 2022 to 3.23 percent in October 2022.

Higher interest rates have caused a slight drop in house prices.

Demand for houses has gone down slightly in recent months, bringing the housing market into an adjustment phase, according to Jákup Andrias Hansen of the Betri Heim real estate agency.

Read the Faroese version of this article here.

More Faroese News in English.