Ifo World Economic Climate clearly improved

The Ifo World Economic Climate Indicator rose in the third quarter of 2009 for the second time in succession. The rise in the indicator was primarily the result of the clearly more favourable expectations for the coming six months. But also the appraisals of the current economic situation have improved slightly for the first time since the third quarter of 2007. The inflation expectations for 2009 are clearly lower, on a world average, than the inflation expectations for the previous year (2.5% vs. 5.4%). On average for the world, neither a boost in inflation nor a slide into deflation is foreseen. Short-term central bank rates will remain at current low levels over the next six months. In accord with the more favourable economic prospects, the long-term interest rates are likely to rise in most countries over the coming six months.