SNB: Stability despite inflation

Since August 2023, Switzerland has recorded annual inflation of 1.6%, which puts it in the zero to two% range set by the Swiss National Bank (SNB). Contrary to the measures taken by the European Central Bank (ECB), which recently increased the key interest rate, the SNB decided to keep its key interest rate stable. This could lead to further strengthening of the Swiss franc against the euro as the interest rate differential widens.

Despite this measure, inflation remains a major concern and there are fears that housing costs may continue to rise, especially in view of the rent increases announced for October. However, the unchanged reference interest rate can provide some stability in the market and reduce the burden of mortgages and loans, which could keep the demand for real estate constant.

Development of key interest rates and inflation (ref. Tages-Anzeiger 20.9.23)