Lower inflation, bright outlook for the future

Inflation in Switzerland has eased and the Swiss National Bank (SNB) has lowered its base rate, which in turn drives down mortgage rates. This trend will continue into next year, according to a group of federal experts. Being plagued by this phenomenon, the real estate market is particularly volatile, but the future indicates more stability. Edoardo Beretta, Professor of Macroeconomics at the Università della Svizzera italiana (USI), spoke about this to RSI.

Talking about money, everyone is interested in saving a few francs, especially in these times. Fortunately, inflation has fallen lately and so the Swiss National Bank (SNB) has lowered its base rate, driving mortgage rates down as well. A trend that is expected to remain unchanged in the future. ‘Price increases historically tend to affect the consumer goods market less and less, i.e. basic goods and services, and more the financial or real estate markets, creating the famous speculative bubbles seen in previous years,’ says Edoardo Beretta, Professor of Macroeconomics at the Università della Svizzera italiana (USI). In recent times, the post-pandemic inflationary rise was felt less in Switzerland, compared to the rest of Europe and the United States, in fact Switzerland "has been less affected by the upward trend in prices in recent years, as the National Bank has acted swiftly and is now recovering from the micro-emergency situation of recent quarters," Professor Beretta concludes. The SNB therefore effectively combated inflation by temporarily raising the key rate.

The full report, broadcast by RSI's 'Quotidiano' programme, is available below.