Author: An analysis by Jan Baumann
26.09.2024, 12:42
The National Bank is doing what was expected. It is lowering interest rates. This means that loans are becoming cheaper, at least in principle. And that is good news for anyone who wants to renew their mortgage loan in the near future.
The interest rate cut is also good news for tenants. They do not have to fear further rent increases – just because of the higher interest rates, as was the case until recently.
The export industry also benefits – twice as much. Firstly, loans become cheaper for Swiss industry, for example for building factories. Secondly, the interest rate cut weakens the franc, i.e. the exchange rate against the euro, dollar and other currencies. This makes Swiss exports – calculated in euros and dollars – cheaper and therefore more attractive, thus promoting business.
No more fear of inflation
This franc effect also attracts additional holidaymakers to Switzerland, which is good for tourism. All in all, the SNB’s interest rate cut – the third this year – is stimulating the economy and thus economic growth.
The outgoing SNB boss Thomas Jordan can therefore say goodbye with an interest rate gift before he hands over his office keys to his successor Martin Schlegel on October 1. This is made possible by the favorable development of inflation. The annual inflation rate was only a good 1 percent recently. Two years ago, prices had shot up sharply in the wake of the corona pandemic and the outbreak of the war in Ukraine.
Since then, the situation has calmed down – and Thomas Jordan is leaving the monetary policy stage with a controlled easing of interest rates.
Jan Baumann
Head of Business Department
Open person box Close person box
Jan Baumann has been working for SRF since 2013 and has headed the business editorial department at Radio SRF since the beginning of 2023. Previously, he worked for around ten years as an editor for the newspaper “Finanz und Wirtschaft”, including as a US correspondent.
