Mortgage rates suggest sustained inflation

Thursday, 28 October 2021 04:00

While many central banks believe any inflation should be a temporary blip, it seems Swiss mortgage lenders are not so sure.

Rates are climbing – and analysts suggest the banks are expecting inflation to stay.

The ten-year fixed rate rose to its highest level since spring of 2019 according to a survey published by Moneyland.ch.

It’s risen from 1.11% in August to 1.31% now and the five-year term is up from point 93% to 1.02%.

Moneyland says this signals the lenders believe sustained higher inflation is coming which would mean a rise in the base interest rates. Which are currently at all time lows.

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