Key interest rate cut is imminent: what that means for rents, mortgages and real estate

Key interest rate cut is imminent: what that means for rents, mortgages and real estate

According to a report by www.luzernerzeitung.ch, the National Bank is faced with the decision to sharply reduce its key interest rate. This move is caused by rapidly declining inflation. Markets expect central banks to cut interest rates with this measure. The impact of this decision would be diverse, particularly on rents, mortgages and property prices.

The reduction in the key interest rate is expected to lead to cheaper loans. This could increase demand for real estate and homes as financing costs fall. The lower mortgage rates could also benefit existing homeowners by reducing their monthly costs.

In addition, the reduction in the key interest rate could make investments in bonds and other fixed income securities less profitable, which could potentially lead investors to invest more in stocks or real estate.

So the impact on the market could be positive as the reduction in the key interest rate could stimulate the economy and stimulate the real estate industry. However, investors and borrowers will need to closely monitor how the situation develops, as reacting too strongly could also bring risks.