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Swiss recovery at risk of reversal

A continued surge in virus cases has forced Swiss and Nordic governments to tighten restrictions this week and there is a risk that Switzerland follows in France and Germany’s footsteps and imposes a national lockdown. The Norges Bank is unlikely to make any policy changes at its meeting next Thursday. Meanwhile, data due next week are likely to show a sharp rebound in Swedish GDP in Q3 and that Swiss inflation remains well below zero.

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