Swiss property, equity markets still at risk

[ZURICH] Switzerland's property and equity markets are still at risk of instability due to the low interest rate environment, a board member of the Swiss central bank said in a newspaper interview published on Sunday.

Real estate prices, mortgage lending and equities have risen strongly in Switzerland in recent years, a by-product of ultra-low interest rates set by the Swiss National Bank (SNB) to lower the appeal of the Swiss franc.

The SNB cannot easily raise rates as this would clash with its efforts to cap the franc. Fritz Zurbruegg said the low rates raised risks for Swiss financial stability.