×
The Swiss National Bank (SNB) recently reached a historic milestone: its key interest rate is now set at 0%. An unprecedented decision that could change the rules of the game, especially for individuals looking to buy property, renegotiate a mortgage, or understand how to protect their savings. Here is an overview.

Why this 0% rate?

Inflation in Switzerland is currently very low, even slightly negative. To avoid a deflationary spiral (where prices fall permanently, harming the economy), the SNB chose to bring its key rate to 0%. The goal is clear: to stimulate consumption and investment.

What this means for you

  1. Potentially cheaper loans
    A low or zero key rate makes access to credit more favorable. This means:

    • SARON mortgages might stay around 0.95% (or slightly lower).
    • Fixed rates are already low (about 1.4% over 10 years) but could decrease slightly more.
    • Consumer loans or leasing could also become more accessible.
      For future homeowners, this is a good time to consider buying or renegotiating a mortgage.
  2. Savings that no longer yield returns
    With a 0% rate, banks will likely reduce interest rates on savings accounts. If you have money saved, don’t expect attractive returns on your bank account anymore.
    Alternative solutions such as real estate investment, bonds, or stocks become more attractive but also riskier.
  3. Upward pressure on real estate prices
    Lower interest rates stimulate demand because borrowing becomes easier. Problem: housing supply remains limited. Result: prices for houses and apartments could rise again, especially in areas with already tight supply.

Conclusion: a decision with multiple effects

Whether you are a saver, future homeowner, or already own property, the SNB’s 0% rate will certainly impact your finances. In the short term, it is a great opportunity to borrow but also requires more caution regarding savings and real estate prices.


Sources
watson.ch - Article
rts.ch - Article
rts.ch - Article
swisslife.ch - Article