On 24 September, the Swiss National Bank (SNB) kept its policy rate at 0%. Inflation edged up, from 0.6% in May to 0.8% in August, mainly because of energy (SNB). Meanwhile, the European Central Bank raised its rates on 10 September (ECB).
What it means for you
- Savings: a savings account earns very little. With inflation close to 1%, money left idle slowly loses purchasing power.
- Mortgage: short-term rates, such as SARON (the Swiss franc’s overnight reference rate), remain low. It is a good time to check when your fixed rate expires.
- Retirement provision: low rates make long-term saving and the third pillar more important when preparing for retirement.
The question to ask yourself: is your money invested in line with your goals, or simply left where it is?
Further reading: the third pillar explained in 5 minutes.
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