{
}
Jerome Powell's recent reintroduction of the term "transitory" regarding inflation raises concerns, as US core inflation remains above the target despite previous aggressive monetary tightening. With rising consumer inflation expectations and potential supply chain disruptions from tariffs, the Fed risks underestimating inflation's persistence. Historical lessons suggest that early intervention is crucial to maintain price stability and avoid a self-fulfilling inflationary cycle.
The Swiss National Bank (SNB) is poised to decide on a potential benchmark interest rate cut next Thursday, with a majority of economists predicting a reduction to 0.25% from 0.50%. While low inflation and modest economic growth support this move, some experts caution that geopolitical uncertainties and unpredictable U.S. policies complicate the outlook. The SNB may also consider foreign exchange interventions as negative interest rates are no longer anticipated.
The Swiss National Bank (SNB) is poised to decide on a potential benchmark interest rate cut, with a majority of economists predicting a reduction to 0.25% from 0.50%. While low inflation and modest economic growth support this move, some experts caution that geopolitical uncertainties and unpredictable U.S. policies complicate the outlook. The SNB may also consider foreign exchange interventions as negative interest rates are no longer anticipated.
Switzerland is set to vote on a reform abolishing the imputed rental value, a tax on notional rental income for homeowners. While homeowners, especially first-time buyers and retirees, may benefit from tax savings, property owners needing renovations and the construction industry could face losses. The federal government anticipates significant revenue declines, but cantons may introduce property taxes on vacation homes to offset this.
Raiffeisen banks in St.Gallen reported a decline in earnings for 2024 due to lower interest rates, despite creating over 50 new jobs and a flourishing stock market business. While net interest income fell, the banks' diversification into investment services led to a slight increase in net profit to CHF 50 million. The overall economic environment remains stable, with rising demand for residential property and job security supporting consumption, despite challenges in the industrial sector.
The planned abolition of the taxation of imputed rental value for owner-occupied properties in Switzerland could lead to significant tax savings for homeowners, enhancing the financial appeal of home ownership. However, the construction industry may face long-term challenges due to reduced investment in renovations, as tax maintenance deductions are eliminated. The reform is expected to result in billions in lost tax revenue for authorities if current interest rates remain low.
Raiffeisen reports a significant shift in Switzerland's residential property market, with home ownership becoming 17% cheaper than renting, expected to rise to 30% as interest rates decrease. Demand for ownership is increasing, while tenants face rising rents and a housing shortage. The potential abolition of the imputed rental value could further enhance home ownership attractiveness, though it may negatively impact the construction industry and retail banks.
Switzerland is set to vote on a reform of the imputed rental value, a tax on notional rental income for homeowners. The proposed changes would eliminate tax deductions for mortgage interest and maintenance costs for owner-occupied properties, benefiting first-time buyers and retirees while disadvantaging those with properties needing renovation. The reform could lead to significant revenue losses for the state and construction industry, with a referendum expected in fall 2025 and potential implementation by 2028.
Switzerland is set to vote on a significant reform regarding the taxation of owner-occupied residential properties, which could abolish the imputed rental value tax. Homeowners may benefit from tax savings, particularly first-time buyers and retirees, while those with properties needing renovation could face losses. The construction industry and state revenues are expected to decline, with potential property taxes on vacation homes introduced to offset losses.
The abolition of imputed rental value is poised to benefit many homeowners, particularly first-time buyers and retirees, who would see significant tax savings. However, the federal government and cantons face billions in lost revenue, while property owners needing renovations may gain the least due to the inability to deduct maintenance costs. A tough referendum campaign is anticipated as opposition mounts from various political and business sectors.
Fredy Hasenmaile
People
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
jerome powell revisits transitory inflation amid rising consumer expectations and tariffs
United States Dollar
Raiffeisenfonds-Wachstum T
USA
William Dudley
Jerome Powell
Donald Trump
Fredy Hasenmaile
Show more
10:26 27.03.2025
swiss national bank faces decision on interest rate cut amid economic uncertainty
Swiss Franc
Euro
United States Dollar
BAK Economics AG
PostFinance AG
DEU
CHE
Maxime Botteron
Martin Schlegel
Fredy Hasenmaile
Philipp Merkt
Arthur Jurus
Karsten Junius
Anne-Claude Maurer
Thomas Gitzel
Show more
12:31 14.03.2025
swiss national bank considers interest rate cut amid low inflation concerns
Swiss Franc
Euro
United States Dollar
PostFinance AG
CHE
Maxime Botteron
Martin Schlegel
Fredy Hasenmaile
Philipp Merkt
Arthur Jurus
Karsten Junius
Anne-Claude Maurer
Thomas Gitzel
Show more
12:24 14.03.2025
Switzerland debates tax reform on imputed rental value for homeowners
07:09 19.02.2025
Raiffeisen banks adapt to low interest rates while expanding investment services
Swiss Franc
Raiffeisen-Osteuropa-Rent
CHE
DEU
Marcel Helfenberger
Fredy Hasenmaile
Matthew Jordan
Ernst Locher
Show more
17:57 18.02.2025
tax reform boosts homeowners while challenging construction industry in switzerland
17:02 18.02.2025
turnaround in swiss housing market as ownership costs decline significantly
10:21 18.02.2025
Imputed rental value reform impacts homeowners and construction industry in Switzerland
08:04 18.02.2025
Swiss homeowners face tax reform as imputed rental value debate intensifies
Swiss Franc
Raiffeisen-Osteuropa-Rent
Edmond de Rothschild Real Estate SICAV
CHE
DEU
Penny Lovell
Fredy Hasenmaile
07:38 18.02.2025
Abolition of imputed rental value: winners and losers in tax reform
07:33 18.02.2025
Trending
Subcategory
Stock Market Updates
Corporate News
Industry Trends
Finance Mergers & Acquisitions
Banking Regulations
Global Financial Events
Market Analysis and Predictions
Retail and Consumer Goods
CEO Changes
Financial Scams and Security
Global Trade Developments
Central Bank Actions
GDP Growth & Recession Forecasts
Industry Mergers & Acquisitions
Government Policies
Hedge Funds & Private Equity
Inflation and Monetary Impact
Workplace Trends
Startups & Entrepreneurship
Government Economic Policies
Countries:
Companies:
The Goldman Sachs Group, Inc.
JPMorgan Chase & Co.
Tesla, Inc.
Apple Inc.
Bank of America Corporation
Wells Fargo & Company
Citigroup Inc.
Barclays PLC
Morgan Stanley
Deutsche Bank Money Market PP
Lloyds Banking Group plc
Huawei Technologies CO. Ltd.
American Express Company
Credit Suisse Strategic Income I
Berkshire Hathaway Inc.
UBS Group AG
AMERICAN EXPRESS
Northern Trust Corporation
Amazon.com, Inc.
Banco Santander, S.A.
Currencies:
United States Dollar
Euro
Chinese Yuan
British Pound Sterling
Swiss Franc
Indian Rupee
Japanese Yen
Canadian Dollar
Australian Dollar
Russian Ruble
Mexican Peso
Saudi Riyal
United Arab Emirates Dirham
Indonesian Rupiah
Hong Kong Dollar
Danish Krone
Offshore Chinese Yuan
Singapore Dollar
Ghanaian Cedi
South Korean Won
People: