The estimated interest rate they use in the calculation is on average around 7 per cent, which is some way above a long-term normal level, which can be assumed to be between 4.5 and 6 per cent. 7 Calculations done by the Swedish financial supervisory authority, Finansinspektionen (FI), on a sample of new mortgage holders show that only just over 5 per cent of households have a deficit in their discretionary income calculations if the mortgage rate rises to 7 per cent. 8 There is hence nothing to indicate that the household sector as a whole would encounter significant problems in paying their interest expenses even if interest rates were to rise substantially in relation to their current levels. And, as I said earlier, our forecast indicates extremely limited rate increases in the years to come. But when the rate rises, many households might have to adapt their consumption to cope with the increased interest payments. From a macroeconomic and monetary policy perspective, it is therefore important to understand how household consumption is affected when interest rates change. 7 I have assumed a mark-up on the mortgage rate of 2 percentage points over the interval for the long-term repo rate of 2.5-4 per cent. 8 See Finansinspektionen (2018), “The Swedish mortgage market”.
Also, in the first five months of 2021, the growth amounted around ALL 10 billion. Meeting the demand of market for cash is achieved through ensuring and planning the sufficient stock of cash at the Bank of Albania, which guarantees the security for both the present and future. Allow me to detail briefly some of the features of these two denominations: The 1000 lek banknote, part of the new series, has a refreshed design, but it retains the same motives presented in the existing one, embedding changes related to the whole configuration of all added and improved elements. The theme of the 10000 lek banknote are the symbol of flag and national anthem - the main symbols of our national identity - accompanied with the portrait of the distinguished poet of the Albanian National Renaissance, at the same time, author the “National Anthem”, Aleksandër Stavre Drenova - commonly known by the pen name “Asdreni”. The presentation of a new series of banknotes means more than a simple change of its image. The Bank of Albania continuously improves the quality of the banknote in circulation, aiming to preserve its integrity. Both new banknotes, like all the other denominations of the new series, contain advanced security features. They are produced with cutting-edge technologies for banknote printing and personalised by denomination. The 1000 lek banknote integrates the raised print in the portrait of Pjetër Bogdani, numerals, lettering, and in the short lines, which help the visually-impaired people to easily identify and recognise the banknote.