Only a small number of tenants got rent reductions after interest rates fell; Aldi’s low bread prices anger bakers; and other Swiss news in our Wednesday roundup.
Few tenants see their rents drop when reference rate is cut
In March, the Federal Housing Administration (BWO) has cut its reference interest rate to 1.5 percent.
By now, the rents of many tenants should have dropped, even if slightly, but that has not happened, according to the new rental index that Zurich Cantonal Bank (ZKB) released on Tuesday.
It shows that only 8 percent of tenants in Switzerland, and 14 percent of those in the canton of Zurich have received a rent reduction.
“It appears that tenants are less keen than before to take advantage of the latest opportunity to lower rent,” ZKB said, even though 40 percent of tenants throughout Switzerland and almost 63 percent in the canton of Zurich would currently be entitled to request a cut.
Aldi cuts bread prices, angering Swiss bakers
The discount retailer has drastically cut the price of its bread: a 500-gr semi-white loaf now costs 99 cents, almost a fifth less than before.
Similarly, brown bread is now also available for 99 cents – a reduction of 14 percent. The price of other types of baked goods has also dropped, by up to 18 percent.
While the customers may be happy about this development, bakers are not.
“I find it tragic,” said Martin Mayer, owner of the Vuaillat bakery in Uster, canton Zurich. “Selling a loaf of bread for 99 cents is absolutely absurd.”
He and other bakers speculate that the low price is due to mechanical production, short dough runs, and the use of cheap flour – all of which affect the bread’s freshness and quality.
A half-kilo loaf of bread should cost about 4 francs, they said.
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Government approves rail expansion between Zurich and Winterthur
Noting that the “current connection between Zurich and Winterthur is overloaded,” the Federal Office of Transport (FOT) has green-lighted the plans for the additional railway line on this route, it said in a press release onTuesday.
The project will feature the Brütten Tunnel as its central component.
The new route between the two cities will have four tracks along its entire length, reducing journey times, while also increasing the number of regional transport connections.
According to the current schedule, preparations for the construction can begin in early 2026.
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Majority of Switzerland’s residents fear a new world war
Geopolitical tensions are a major concern for the majority of Swiss population, according to a new study conducted by AXA insurance.
Nearly 70 percent of respondents rate the risk of a new world war as ‘significant’, and even ‘very significant.’
Therefore, “the country’s companies must diversify their supply chains regionally to reduce the risk of a sudden halt to trade,” said Monika Wieneke, head of the Risk & Security division at AXA Switzerland,
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