The US Federal Reserve raises the key interest rate to 3.75 to 4.00 percent and signals another step ahead. Why the turnaround came in Washington, how the markets are reacting, and what this means for SARON and fixed mortgages in Switzerland.

Long-term mortgage rates in Switzerland have climbed to their highest level in a year and a half. This is remarkable because the National Bank has kept its key interest rate at 0 percent since spring. Anyone who thought that this also capped the fixed-rate mortgage curve is now being proven wrong.