Citi’s Chief Korea Economist Expects BOK to Cut Rates Again in 4Q

The transcript discusses expectations for monetary policy, including potential rate cuts in Q4, with a focus on October as a strategic time due to trade tensions and Fed guidance. It highlights the global emphasis on fiscal policy, particularly in South Korea, where a pro-growth budget for 2020 has been announced. The discussion also covers revised growth forecasts for South Korea, considering fiscal and monetary easing, with a projected increase in growth for 2020.

What are the two main factors influencing the timing of the anticipated interest rate cut in October?

• Trade tensions and Fed's guidance

• Currency exchange rates and GDP growth

• Stock market performance and oil prices

• Inflation rates and employment data

Why is there limited space for further monetary policy easing?

• Interest rates are already at a record low

• Inflation is too high

• The economy is growing too fast

• There is a surplus in the budget

What is the focus of South Korea's fiscal policy for 2020?

• Increasing investment and supporting SMEs

• Cutting government spending

• Improving trade relations

• Reducing taxes

What was the revised growth target for South Korea in 2019?

• 2.1%

• 1.8%

• 2.5%

• 3.0%

What is the expected growth rate for South Korea in 2020 according to the forecast?

• 1.5%

• 2.2%

• 3.0%

• 2.8%