Bank of Korea

Bank of Korea Eases Monetary Policy Again

October 16, 2019

The Bank of Korea enacted its second 25-basis point repo rate cut since July and released a statement that suggests more ease may be done. But with two of seven policymakers dissenting in favor of not cutting the main interest rate today, the timing and certainty of a third move has been thrown into some […] More

Greater Pessimism Surrounding Brexit, U.S.-China, and Global Growth

October 16, 2019

Investor confidence regarding the main geopolitical risks of Brexit and U.S.-Sino trade continue to flip-flop seemingly on a daily basis, often without any concrete new actions. Still no deal on Brexit has been announced with the main sticking point being the handling of Northern Ireland’s border with Ireland, and time is getting exceedingly short. Trade […] More

Busy Session on Last Business Day of August

August 30, 2019

A heap of economic data have been released, but also the following important geopolitical developments have occurred. A Scottish judge denied a court challenge to block Prime Minister Johnson’s plan to suspend parliament for a couple of weeks and thereby prevent parliament from organizing to prevent a hard Brexit if no deal can be reached. […] More

Bank of Korea

July 18, 2019

The Bank of Korea’s 7-day repo rate was sliced to 1.50% from 1.75% in a move that surprised some analysts and which was ascribed to mounting trade tensions, easing monetary policies in other economies, and geopolitical risks. In taking this step, monetary authorities revised projected GDP growth this year slightly downward from 2.5% to something […] More

A Quartet of Central Bank Rate Cuts and Netflix Stock Takes a Large Hit

July 18, 2019

Central bank rates were cut today in South Korea, Indonesia, South Africa, and Ukraine. The likelihood that the Fed will ease at the end of this month played a role in each of these actions. All of the reductions were 25-basis point moves. The share price of Netflix has tumbled 10.75% in response to an […] More

Bank of Korea Leaves Interest Rate the Same but Reduces 2019 Growth and CPI Forecasts

April 18, 2019

As expected, the Bank of Korea’s 1.75% base rate was left unchanged. This represents an “accommodative” stance, according to a released statement. Officials argue that “it is expected that the domestic economy will continue to grow at a rate that does not diverge significantly from its potential level, and it is forecast that inflationary pressures […] More

No Deal Between U.S. and North Korea and a Whole Lot of Data Released

February 28, 2019

The summit between U.S. President Trump and North Korean President Kim ended prematurely without an agreement. Share prices in Asia lost 1.8% in South Korea, 1.3% in Indonesia, 1.2% in Singapore, 0.9% in Hong Kong, 0.8% in Japan but only 0.4% in China. In Europe, there’s been scant net movement in the German Dax or […] More

Anxious Times for Investors

January 24, 2019

Investors continue to face three big uncertainties: the U.S. government shutdown, the fast-approaching Brexit deadline, and the failure so far of U.S. and Chinese trade negotiators to reach a mutually satisfying agreement. Planned senate votes on the border wall and shutdown are not likely to pass. The on-again, off-again scheduled state of the union address […] More

Bank of Korea Hikes Base Rate to 1.75%

November 30, 2018

The Bank of Korea‘s benchmark interest rate has been raised by 25 basis points to 1.75%. This was the second such  increase of the cycle following an initial tightening in November 2017, which had been the first hike since 2011. In between, there were five 25-basis point cuts from March 2014 to June 2016. A […] More

Trump Fighting a Two-Front War Against Fed and Over His Stance on Saudi Arabia

October 18, 2018

Minutes from the FOMC September meeting minutes at which monetary officials again raised interest rates reveal confidence in continuing growth, a view shared by some that the fed funds target is likely to spend a while above the perceived long-run level, and a considerable time allotted to discussion of the ramifications of U.S.-Sino trade tensions. […] More

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