Strategy update: Opportunities &
challenges in the global market
A look at interest rates, real estate, and the UK three years after Brexit
Interest rates & inflation
Inflation in the US is falling slightly, but at a core rate of 4.8% it remains well above target. The US dollar has lost around 10% against a basket of currencies since autumn 2022. The ECB is following suit and also raising interest rates. The markets expect the cycle of interest rate hikes to end soon, but persistently high housing costs are keeping experts cautious.
Real estate markets under pressure
Prices for owner-occupied residential property are rising slightly in Switzerland, despite higher financing costs. However, experts expect a correction in the investment property market. The international market also remains tense: in the US, 20% fewer properties are being sold than in the previous year, with many waiting for inflation and interest rates to fall.
The United Kingdom after Brexit
Three years after leaving the EU, the United Kingdom is struggling with weak growth (-0.3% GDP forecast for 2023) and high inflation. London in particular presents a mixed picture: as a global financial and luxury location, the city is booming, but at the same time it is suffering from exorbitant rents and an enormous investment backlog in infrastructure.
