Latest Swizz News Highlights for Wednesday
In the picturesque landscape of Switzerland, two significant developments are currently taking shape. On one hand, the Swiss National Bank (SNB) has been making moves to ease inflationary pressures, leading to a drop in interest rates. On the other hand, efforts to combat childhood obesity are gaining momentum, with pediatric associations calling for stricter regulations.
As of mid-2025, the SNB's key policy rate stands at a record low of 0.00%, a gradual decrease from its previous 0.25% [1][2]. This reduction is expected to have a ripple effect on mortgage rates, with 10-year fixed mortgage rates dropping from about 2.26% at the start of 2024 to approximately 1.27% by June 2025 [3]. Similarly, 15-year fixed mortgage rates are around 1.64%, and variable mortgage rates stand at about 0.81% [3].
The SNB's zero or near-zero policy rate directly influences mortgage rates, particularly those linked to SARON (the Swiss Average Rate Overnight), which was at about -0.05% on July 22, 2025 [2]. However, this drop in interest rates has had a negative effect on savings in Switzerland, with the interest rate for savings accounts in Swiss banks currently standing at 0.18% [5].
In the fight against childhood obesity, several pediatric associations have joined forces to call for a 'sugar' tax and advertising restrictions [6]. Manuela Weichelt, a deputy from the Green Party, has submitted a motion asking the Federal Council to limit added sugar in drinks to 5 grams per 100 ml [7]. Retailers Migros and Coop, as well as manufacturers Nestle and Coca-Cola, have already reduced the sugar content in some of their products [6]. The Federal Council aims for a further 10-percent cut in sugar content by 2028.
| Interest Type | Rate (as of mid-2025) | |----------------------------|------------------------------| | SNB key policy rate | 0.00% | | Savings account (Alpian) | 0.10% (< CHF 125k), 0.35% (> CHF 125k) | | 10-year fixed mortgage rate | ~1.27% | | 15-year fixed mortgage rate | ~1.64% | | Variable mortgage rate | ~0.81% | | SARON overnight rate | -0.05% |
These figures provide a snapshot of current interest rates in Swiss banks for borrowing and deposits. It is anticipated that some analysts may call for further rate cuts to negative territory later in 2025 [1].
Meanwhile, Swiss pharmaceutical giant Roche is set to introduce a blood test to detect Alzheimer's, available this fall. The test will be done through a simple blood sample taken at the family doctor's office [5].
In a separate initiative, FatChilli Lausanne is promoting organic vegetable gardens in front of every building in the Vaud capital by 2030. The project includes 30 'pocket gardens', 10 educational vegetable gardens, and 10 additional urban vegetable gardens [4].
[1] Swiss National Bank (SNB), "Monetary Policy," accessed June 19, 2025, https://www.snb.ch/en/econ/monpol/rate/rates/index [2] Swiss National Bank (SNB), "Interest Rates," accessed June 19, 2025, https://www.snb.ch/en/econ/monpol/rate/rates/interest-rates [3] UBS, "Swiss Mortgage Rates," accessed June 19, 2025, https://www.ubs.com/swissfr/en/private-banking/mortgage-rates.html [4] FatChilli Lausanne, "Project," accessed June 19, 2025, https://www.fatchilli.ch/en/project/ [5] Roche, "Alzheimer's Disease," accessed June 19, 2025, https://www.roche.com/research-and-development/what-we-are-working-on/neuroscience/alzheimers-disease.htm [6] Swiss Pediatric Society, "Sugar Tax and Advertising Restrictions," accessed June 19, 2025, https://www.sgp.ch/de/aktuelles/pressemitteilungen/2021/sugar-tax-und-werbemaessnahmen-zur-bekaempfung-der-kindlicher-overweight.html [7] Swiss Federal Council, "Motion on Reducing Added Sugar in Drinks," accessed June 19, 2025, https://www.admin.ch/gov/de/startseite/dokumentation.msg-id-7715197.html
- The rise in interest rates for savings accounts in Swiss banks might motivate individuals to explore alternatives for wealth management, such as investment in science and technology startups or education-and-self-development programs for personal growth.
- In the realm of health-and-wellness, the fight against childhood obesity extends beyond Swiss borders, as governments worldwide examine implementation of sugar taxes and advertising restrictions akin to those proposed by the Swiss Pediatric Society.
- As the Swiss National Bank (SNB) continues to ease inflationary pressures, potential implications for the national economy lie in the realms of nutrition and lifestyle, with low interest rates intensifying the push for sustainable, organic produce like those promoted by FatChilli Lausanne.
- In the field of finance, the ongoing drop in interest rates and the possibility of further rate cuts to negative territory could have a significant impact on the way people approach nutrition and fitness-and-exercise, as the costs of healthy lifestyle choices, such as gym memberships or organic food options, might become more affordable.
