In contrast to market pricing, we think that the SNB will be cautious and cut its policy rate by just 25bps, to 0.75%, next week as the Bank sticks to a gradual approach to loosening monetary policy. That said, the SNB is likely to lower its inflation forecast again and explicitly state that it expects to loosen policy further in the future. We expect the SNB to cut its policy rate by 50bp in 2025.
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