Tag Archives: Business & Economy

On 14 December 2023, the Swiss National Bank (SNB) said it was ending its interest rate tightening cycle after a clear slowdown in inflation. © David Taljat | Dreamstime.comWith inflation rising more slowly than the central bank’s 2% ceiling (it was 1.4% in November 2023), the SNB left its key interest rate at 1.75% for a second consecutive meeting. While the SNB is still willing to intervene in currency markets by buying and selling Swiss francs, Jordan said that can go in both...

According to the Economist’s annual ranking of cities, Zurich came out top in the report published on 29 November 2023. Photo by Ömer Gülen on Pexels.comTied in first place this year were Singapore and Zurich. Singapore is no stranger to the top spot: it has ranked as the priciest place to live in nine of the past 11 years. Groceries, alcohol and clothing in the international business hub can cost a small fortune, wrote the Economist. The cost of a certificate needed to own a car (which...

Switzerland, a nation with a reputation for well managed finances, like much of the world is struggling to cover rising costs. Projected spending on the military and state pensions are key challenges. Spending on refugees and healthcare are additional head winds. The federal government has been looking hard for savings. However, this week talk turned to the possibility of higher taxes, reported RTS. © J0hnb0y | Dreamstime.comAt around 17% of GDP, Switzerland federal debt is relatively low...

From 1 January 2024, electric vehicles (EV) will be taxed like their petrol and diesel equivalents, announced Switzerland’s Federal Council this week, reported RTS. Photo by Kindel Media on Pexels.comCars imported into Switzerland suffer a 4% tax. EVs are currently exempted from this tax. From the beginning of next year all cars including EVs will be taxed. The exemption, introduced in 1997, was designed to increase the rate of uptake of electric cars. However, on Wednesday the Federal...

Every year, investigativ.ch, an association of investigative journalists, bestows an award on the public figure it deems to have exercised the lowest levels of transparency during the year. This year the award went to Karin Keller-Sutter, Switzerland’s minister of finance, for the secret decision making process surrounding the fire sale of the bank Credit Suisse to UBS, another Swiss bank. The arrangement was backstopped by the federal government, and ultimately taxpayers, and stripped...

Every quarter, Switzerland publishes updated spending forecasts for the current year. On 25 October 2023, it raised the 2023 spending forecast by CHF 300 million to 81.6 billion, an increase of 0.4% on the previous quarter, but still below the original budget. Swiss Budget © Marekusz | Dreamstime.comThe revision takes the ordinary budget deficit from an original CHF -700 million to -900 million, a figure 300 million above the late quarterly estimate of -600 million. At the same time,...

Train and other public transport fares in Switzerland are set to rise 3.7% on average from 10 December 2023. This week it was revealed that the hike was pushed by the federal government, reported Swiss broadcaster SRF. © Hai Huy Ton That | Dreamstime.comThe decision to increase fares came after the federal government put pressure on Swiss Rail to push the amount it charges passengers higher. Switzerland’s price watchdog Stefan Meierhans said he was shocked. Internal documents revealed...

The costs of mortgages and building maintenance are rising. Rents are following. In French-speaking Switzerland tenant arbitration organisations are receiving a deluge of complaints and requests for help from tenants, reported RTS. Copyright Akara Kittipadimakun | Dreamstime.comIn Switzerland, it is common for rental agreements to contain a clause that allows rents to be adjusted up or down based on a reference interest rate, which is calculated based on the average cost of mortgage...

This week, the Swiss National Bank (SNB) surprised many investors by leaving its benchmark interest rate on hold at 1.75%. The decision to hold mirrors decisions this week by the US Fed and Bank of England not to raise rates. By contrast Norway and Sweden lifted rates this week. Thomas Jordan, head of the SNBIn addition, like central bankers in the US and England, the SNB refused to rule out future hikes. And like Sweden the SNB signalled that it would continue to support the currency by...

A popular initiative has been launched in Switzerland to vote on partially nationalising the UBS Group. For a popular initiative to reach the voting stage 100,000 signatures need to be collected within 18 months. © Andersastphoto | Dreamstime.comThe banks initiative aims to change the Swiss constitution to require large banks and insurance companies of systemic importance to be managed as joint stock companies with the federal government as majority shareholder, a set up described as a...