There is expectation among homeowners: Interest rates will fall again next year

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Homeowners can look forward to the fact that interest rates are unlikely to rise further and that the Swiss National Bank (SNB) is unlikely to raise interest rates further at its next assessment of the situation. Even for tenants, this is good news in the medium term: after the expected increase in the reference interest rate in December, the increase here is likely to slow down for now.

The situation is getting better: Interest rates are likely to fall again next year; first in the dollar and euro zones, and then in Switzerland. Economists are surprisingly in agreement on this in a survey: “The Fed and ECB are likely to consider possible rate cuts in the first half of 2024, while the SNB is unlikely to start before the second half of 2024,” the AWP news agency writes.

Inflation is no longer a threat

The reason: The global economy is reeling and further interest rate hikes would be poison. On the other hand, interest rate cuts could help restart the economic engine. The strong franc in Switzerland gave great support to the fight against inflation. Although inflation in Switzerland is likely to increase slightly at the beginning of the year due to rent and VAT increases, the SNB has already taken this into account in its monetary policy.

“If the inflation rate does not rise significantly above this and the medium-term inflation outlook does not change, the SNB has set its interest rate high,” says Thomas Gitzel, chief economist at VP Bank, summarizing the consensus view.

Source :Blick