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Economic growth in Switzerland has slowed in recent quarters, and recently released data showed the third quarter was no exception. Overall growth has been weighed on by the country’s external sector, which has suffered from a strong domestic currency and tepid growth among its main trading partners. However, domestic demand has also been soft, which has perpetuated the deflationary environment that Switzerland has been mired in for the past few years. The Swiss National Bank (SNB), the country’s central bank, has implemented negative policy rates in an attempt to spur inflation, and is unlikely to remove policy accommodation any time soon.

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