- Analytics
- News and Tools
- Market News
- SNB: Vulnerabilities on the mortgage and real estate markets persist
SNB: Vulnerabilities on the mortgage and real estate markets persist
In its monetary policy statement, the Swiss National Bank (SNB) highlights the persistent risks to Switzerland’s real estate sector while noting that more tightening could be on the cards.
Also read: SNB hikes key deposit rate by 50 bps to 1.50%, as widely expected
Key quotes
Does not rule out further interest rate rises.
It cannot be ruled out that additional rises in the snb policy rate will be necessary to ensure price stability over the medium term.
Remains ready to intervene in currency markets.
To provide appropriate monetary conditions, the SNB also remains willing to be active in the foreign exchange market as necessary.
Inflation has risen again since the beginning of the year, and stood at 3.4% in february.
The latest rise in inflation is principally due to higher prices for electricity, tourism services and food.
Stronger second-round effects and the fact that inflationary pressure from abroad has increased again mean that, despite the raising of the snb policy rate, the new forecast is higher through to mid-2025 than in december.
Without today’s policy rate increase, the inflation forecast would be even higher over the medium term.
The growth outlook for the global economy in the coming quarters remains subdued.
In the short-term, the main risks are an economic downturn abroad and adverse effects of the turmoil in the global financial sector.
Over the medium-term inflation should return to more moderate levels, not least thanks to monetary policy and due to the economic slowdown.
Market reaction
At the time of writing, USD/CHF is holding the lower ground near 0.9130, losing 0.48% on the day.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
