SNB Vice Chair Expects Low Rates Will Continue

The Vice Chairman of the Swiss National Bank (SNB), Fritz Zurbruegg, said on Tuesday that he expects global interest rates will remain low, Reuters reported.

“It is to be expected that the global low interest rate environment will remain unchanged for some time to come.”

“Such policy continues to be necessary in order to counteract the impact of the coronavirus crisis. It is, therefore, to be expected that interest rates will remain low for some time yet, which means that incentives for increased risk-taking will remain in place.”

Zurbruegg also says vulnerabilities in the mortgage and real estate markets are at a high level at present.

“We are currently seeing clear signs of unsustainable mortgage lending on the one hand and heightened risks of a price correction on the other.”