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Peak rates approaching in Norway, Switzerland

The Norges Bank shifted to a slower pace of tightening this week, and the latest data on the housing market suggest that there are downside risks to our forecast for the policy rate to hit 3% and stay there throughout next year. Meanwhile, data from Switzerland suggest that inflation has now passed its peak, which suggests that there are also downside risks to our forecast for the SNB’s policy rate to reach 1.25%.

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