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Dovish hold by SNB, policy loosening imminent

Today’s SNB decision and statement were largely in line with expectations as the policy rate was held at 1.75% and policymakers removed any mention of FX sales. We think the latter decision signals that loosening is imminent and will probably first materialise through a tapering of FX sales. We expect this to be followed by a 25bp rate cut in March and a total of 75bp of cuts in 2024.

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