Higher rates expected to reduce demand for financing

Higher interest rates are expected to curb household demand for financing in the fourth quarter, Kringvarp Føroya (KVF) reports, citing information from the banks to the Landsbanki, the national bank.

The banks do not expect households’ financial position to worsen during the quarter, despite the increase in rates. They reported that household demand for financing rose slightly in the third quarter, when households’ financial position remained unchanged.