Cheap Debt Threatens Swiss Economic Stability

Cheap Debt Threatens Swiss Economic Stability by Matthew Allen, swissinfo.ch

The Swiss economy should wean itself off low interest rates and cheap mortgage loans as soon as possible if it wants to remain healthy, according to a study by the Organisation for Economic Co-operation and Development (OECD).

The latest OECD economic profile of Switzerland, which is updated every two years, has once again warned that banks, business, homeowners and pension funds are in danger of a hard landing once interest rates start to normalize.

The report came out on the same day that Swiss government figures showed the country’s economy had stagnated in the third quarter of this year.

The OECD has highlighted the Swiss property issue before, but the risk...