The volatile interest rate environment has calmed down after a period of increases. Looking at the long term, we are in an environment of elevated interest rates. In 2022, inflation rose significantly, reaching a peak of 3.5 percent. As a result, the Swiss National Bank (SNB) raised its key interest rate five times in a row, most recently to 1.75 percent.
Thanks to these measures, inflation has declined significantly in recent months and is now below the two percent mark, which corresponds to the price stability range defined by the SNB.
Therefore, in December 2023, the SNB decided to refrain from further interest rate hikes. If the SNB's forecast proves accurate and inflation remains within the target range in the coming months, the first interest rate cuts are expected during 2024. Yields on Swiss government bonds and mortgage rates fell significantly until the end of December 2023, but rose slightly again at the beginning of January and have since traded sideways.
Looking ahead to interest rate developments in 2024
The next important indicator for the markets is the monetary policy assessment of the Swiss National Bank (SNB). The SNB is expected to refrain from an interest rate cut in the spring of 2024 and only lower its key interest rate for the first time in the second quarter, together with the European Central Bank and the US Federal Reserve. Overall, three interest rate cuts are expected in Switzerland this year, which should reduce the key interest rate from 1.75 percent to 1 percent.
In January, Swiss inflation was significantly weaker than expected. Therefore, there is a possibility of an interest rate cut in spring 2024 if inflation is unexpectedly low and the Swiss franc strengthens.
The capital market has already adjusted to a series of key interest rate cuts in 2024, therefore we expect only a slight decline in the long-term yields of Swiss government bonds or mortgage rates in the coming quarters.
Mortgage rates linked to SARON, on the other hand, are likely to benefit from the interest rate cuts by the National Bank, since the SARON interest rate is closely linked to the SNB's key interest rate.
Why interest rates at Cashare are so attractive
Do you need to purchase a new vehicle, a new property, or operating equipment for your own business? But the A look at the high interest ratesThe fees that must be paid for loans from banks and other traditional credit providers cause many Swiss people to feel a lump in their throat.
An alternative solution? Crowdlending!
Whether for SMEs or private individuals: It's worth taking a look at crowdlending now, especially if you're looking for something particularly suitable Secure attractive interest rates want.
Cashare, as the first and largest crowdlending provider in Switzerland, connects borrowers and investors directly via the Cashare platform. Crowdlending is a Completely bank-free process, which allows borrowers to benefit from a favorable loan model and attractive interest rates.
How is the interest rate for a loan calculated?
Cashare always guarantees a fair interest rateThis includes a return on equity, refinancing costs, an inflation premium, and a risk premium. The total interest rate varies accordingly depending on the rating and term. Therefore, no precise general statement can be made.
However, it is generally possible to obtain a loan on the platform with Interest rates between 3.9% and 9.9% To receive a personalized offer, you can apply for a loan here in just a few steps: https://www.cashare.ch//de/geld-leihen-mit-cashare/
Sources:
https://www.ubs.com/ch/de/private/mortgages/mortgages-interest-rates.html#interest-rates
https://support.cashare.ch/hc/de/articles/360013641279-Welchen-Zins-kann-ich-erwarten
https://www.cashare.ch//de/risikobewertung-ratings/
