There Is an Opening for Further Cuts From BOK, Says Moody’s Cochrane

The transcript discusses the Bank of Korea's (BOK) decision to cut rates to a record low of 1.25% due to economic imbalances and high debt levels. Despite these challenges, the labor market remains stable, with the service economy holding up well. In China, credit expansion and targeted stimulus are helping to manage growth amid broader macroeconomic challenges, including a trade war and declining labor force.

What is one of the main reasons the Bank of Korea might hesitate to cut interest rates further?

• Emerging economic imbalances

• High inflation rates

• Strong export performance

• Low government spending

Which sector is primarily responsible for maintaining demand in the global economy despite a slowdown?

• Agriculture

• Construction

• Manufacturing

• Service

In which region is consumer spending particularly driving the economy?

• Middle East

• Africa

• Asia

• Western economies

What is one of the challenges China faces in its economic stimulus efforts?

• Targeting stimulus to the private sector

• Decreasing liquidity

• Increasing inflation

• Targeting stimulus to the public sector

What long-term trend is contributing to slower growth in China?

• Rising consumer spending

• Declining labor force

• Growing export market

• Increasing labor force