Q3 GDP data are not a sign of things to come

While Q3 GDP data from Switzerland and Sweden, released this week, were stronger than what we had pencilled in, they do not change our views on the outlooks for monetary policy in either case. We forecast that the SNB will end up cutting interest rates further into negative territory next year, and data released next week are likely to show that Swiss inflation remained in negative territory for the second month in a row in November. Meanwhile, although the Riksbank is all but certain to raise the repo rate rates back to zero in December, we think that pressure will build on it to loosen policy again next year.