SNB lowers interest rate

Cue all the SARON mortgage holders high-fiving each other :wink:


Why do they do this just before pay day?!

HIGHFIVE everybody!

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Why, what difference does it make?

Well, I started a thread in old EF about rent increases due to changes in SNB interest rate.

I guess I’m lucky. The interest rate went above the interest rate when I signed the rental contract and I never received the awful letter of “your rent went up”. Now it’s going down, so the chances of rent going up also go down.

So, it’s relevant for all people that rent, and for all people with a variable interest mortgage.

Yes. My question was in direct response to Phil’s "Why do they do this just before pay day?!

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6 posts and I have no idea what the SNB did.

The Swiss National Bank cut its main interest rate by 25 basis points to 1.50% on Thursday, a surprise move which made it the first major central bank to dial back tighter monetary policy aimed at tackling inflation.


And there I was thinking the Pacific Peso (aka AUD) was going to get back above 60Rappen, but the profit-taking has already started :slightly_frowning_face:

Sorry, dumb me.

Maybe PhilMCR is paid in CHF and spends in any other currency. This lowering of the rate translated to a 1% slip in the EUR/CHF price ratio. Who knows if there was a more dramatic change in another currency.

He must be being paid quite well for 1% to be worth whinging about…although it is Bonus month in the finance sector.

SNB cuts rates again. Now at 1.25%.

Great! Not only for my mortgage, but I need the value of the Pacific Peso (AUD) to go up against the Franc.

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Yes but i do not see Referenzzinssatz is following this reduction. This is a joke!

Your understanding of the reference rate is the joke.

Probably. Can u explain please? thx


Exactly. Reference rate is based on the average rate of the entire mortgage portfolio in Switzerland. If someone closed a fix rate of 3% last year, this will go into the mix as well as fixed rates of 1% closed in 2021 or floating SARON rates. And of course it includes the banks’ margins.