Faroese banks expected to raise loan rates after ECB hike

The European Central Bank raised its key interest rate by 0.25 percentage points today, and the Danish National Bank is widely expected to follow suit shortly, according to Landsbanki Føroya.

Malan Johansen, the bank’s director, told Faroese broadcaster KVF that Faroese banks will likely increase their own rates in response, making borrowing more expensive for homeowners and others with loans.