The Swiss National Bank held its policy rate at 0.00% as expected in its June 18 monetary policy assessment. However, it slightly raised its inflation forecast: annual inflation stood at 0.60% in May and is expected to climb to roughly 0.80% over the remainder of the year, according to the SNB, before settling back to a lower level. Monetary policy room therefore remains intact, with the SNB likely to keep the policy rate unchanged for the time being.
The mortgage market also presents a notable picture: thanks to the SNB's zero-rate policy and robust economic conditions, the market continues to grow, with banks remaining particularly competitive in lending for owner-occupied homes. This strengthens borrowers' negotiating position, making a structured comparison of providers all the more worthwhile for new mortgages and refinancing.
