- in 6-12 months time
Klaus Wellershoff in an interview with SonntagsZeitung
- gradual inflation increase will see boost in lending rates, and Switzerland ” can not escape”
- SNB in “terrible dilemma” trying to keep swiss franc from strengthening too much and inflation low
- rates are so low that real estate market is “overheated” and “unhealthy”
- higher mortgage rates will quickly lead to “significant burden on household budgets”
Wellershoff was chief economist at UBS from 1997 to 2009 and highlights the big rock and hard place between which the SNB continues to battle. Only yesterday Jordan was again talking about the threat of using negative interest rates
Jordan still between a big rock and a very hard place
