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2025-12-17 17:22:56
[Germany's December Ifo Business Climate Index Misses Expectations] ⑴ Germany's December Ifo Business Climate Index was 87.6, lower than the expected 88.2. ⑵ The previous value was revised down from 88.1 to 88.0. ⑶ The current situation index was 85.6, lower than the expected 85.8, and unchanged from the previous value. ⑷ The expectations index was 89.7, lower than the expected 90.5, and the previous value was revised down from 90.6 to 90.5. ⑸ This overall index is the weakest performance since May, with declining German business confidence at the end of the year weakening recent optimism about economic prospects. ⑹ Nevertheless, there is still optimism for next year against the backdrop of a more expansionary fiscal policy. ⑺ These data are not expected to immediately change the ECB's policy outlook. The market generally expects the central bank to keep key interest rates unchanged this week and continue this stance for some time in early 2026. ⑻ Current market participants have limited expectations for the ECB because the Eurozone economy remains relatively fragile, and Germany's particularly stubborn inflation problem continues to limit the flexibility for further monetary policy easing.
