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πŸ‡ͺπŸ‡Ί Germany just gave the ECB every excuse it needed to hike again

πŸ‡ͺπŸ‡Ί Germany just gave the ECB every excuse it needed to hike again

Germany's Q2 GDP growth was revised up to 0.3% quarter-on-quarter, and the ifo sentiment index hit a one-year high of 88.8. That strips the ECB of its best argument for pausing, with eurozone inflation still running at 3.2%.

Line chart of German GDP, government consumption, and capital investment normalized to 100 at end-2019, quarterly from 2020 through mid-2026.
Holger ZschΓ€pitz flags an unbalanced German recovery: the revised 0.3% Q2 gain was almost entirely export-led, while fixed investment remains 7% below 2019 levels even as government consumption has climbed 15%. Source

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