We have translated our latest blog entry for the growing number of our international readers.
We believe this article is of special interest for expats and foreigners living in Switzerland:
Interest rates were moving significantly during the last months, which we think is interesting to have a closer look at. Last November we were writing on this blog about the current low interest rate environment and the different implications this has. While savers, insurers and pension funds are suffering and have to cut their yield expectations, the low interest rates have positive impacts on debtors (i.e. the government) and those who live in a rented home. For the latter, last weeks had especially good news. The so called „Referenzzinssatz“ which is the base interest rate for rentals has been lowered to 2% (from 2.25%), even while market interest rates were moving upward during the last half year. The 10-year Swiss Government bond yield climbed to 1.2% in the last weeks (coming from 0.5% in November 2012, more than doubling!). What to expect from these recent occurrences? Weiterlesen