The SNB lowered interest rates

[Baptiste Wicht]

Hi

If you have not seen the news, I am sharing it here: A few days ago, the Swiss National Bank (SNB) cut its interest rate by 0.25% to 1.50%.

What consequences can we expect?

The first direct consequence was that the CHF lost value against the USD and EUR.

Another consequence is that some banks will start to cut their interest rates as well. Basically, all banks that are offering more than 1.5% will likely cut their rates. WillBe has already done this, for instance.

We can also expect new mortgages to go lower at some point, but this will not be instant. And this may cut the trend of increasing reference mortgage rates as well. With that, we may not see another reference hike, but that's not guaranteed, given the computation on the average mortgage rates.

If you want to learn about the reference interest rate, you can read this article:

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What do you think about this? Should I post more news like this in the forum?

 

[Baptiste Wicht]

As a result of the lower rates by the SNB, Radicant also decreased their rates from 1.50% to 1.25%.

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[Ralph]

So did Willbe unfortunately. Still like their account. I am a bit careful with the cembra one. Also have a Cler but not sure it's further the inflexibility

 

[Blackcat]

If only the mortgages were updated with the same speed as deposit interest reduced...

 

[Baptiste Wicht]

If only the mortgages were updated with the same speed as deposit interest reduced...

The way they are calculated is indeed quite complicated. The SARON itself will go down, as will the interest rate. But the problem is that most banks are using a compounded SARON rate, so this will be an average and will take a little while to go down.