Interest rates and inflation; global analysis

美 연준 금리 동결 및 日 17년만의 금리 인상, 여파는? Thanks for tuning in to Within the Frame. I’m Han Da-eun in Seoul. Interest rate settings by the central banks of advanced economies are making headlines this week. The U.S. Federal Reserve has left interest rates unchanged saying ‘inflation has eased over the past year but remains elevated’. Just a day before the Fed’s announcement, the Bank of Japan raised interest rates for the first time in 17 years. All this, as South Korea struggles to tame inflation amid soaring prices of fresh produce and energy. To help us break down the numbers, we have Song Soo-young, a Professor at Chung-Ang University’s College of Business and Economics joining us. Also accompanying us tonight is Greg Buchak, Professor of Finance at Stanford Graduate School of Business. (SONG) Q1. The U.S. Fed froze its key interest rate as widely expected. But what investors were waiting for was the dot plot, a chart that predicts the direction of the Fed’s rates. Could you give us your analysis of the dot plot and help us understand what we can expect down the road this year? (BUCHAK) Q2. Another watchpoint of this month’s monetary policy meeting was whether the U.S. Fed will revise its economic outlook for this year. As anticipated, it revised up the real GDP growth outlook to 2.1% from its previous forecast of 1.4%. What’s behind the adjustment? (SONG) Q3. How do you assess the Fed announcement’s short-term and long-term impact on South Korean markets? How would it affect the Bank of Korea’s future interest rate settings? (BUCHAK) Q4. Meanwhile, the Bank of Japan has raised interest rates for the first time in 17 years putting an end to the country’s negative interest rate era. The central bank projected that the price stability target of 2% would be achieved in a sustainable and stable manner. How do you gauge the impact of Japan’s historic rate pivot on global financial markets? (SONG) Q5. Some analysts predict Japan’s rate shift will bring positive effects to South Korea’s stock markets as well as exports on the back of strong Japanese yen. What’s your take? (SONG) Q6. Let’s talk a bit about the continuing “fruit-flation” in Korea. The soaring prices of fresh fruits have prompted the government to rein in to stabilize prices. What’s your perspective on the current state of fruitflation and its impact? (BUCHAK) Q7. Meanwhile, global oil prices continue to rise, hitting a four-month high this week. Both Brent and WTI crude oil witnessed a substantial increase of more than 4% in recent days. What’s continuing to drive up oil prices? How much longer do you expect oil prices to continue driving inflation? (BUCHAK) Q8. The global sugar market has witnessed a notable uptick in prices recently after showing a brief downward trend at the end of last year. What’s your projection of sugar prices going forward, and how would it impact world food prices? And that brings us to the end of this show. Thank you for watching, and be sure to tune in same time tomorrow to join our conversation. Good bye for now. #UnitedStates #Fed #Inflation #Interest_rate #Monetary_policy #미국 #연준 #기준금리 #물가 #인플레이션 #Arirang_News #아리랑뉴스 📣 Facebook : 📣 Twitter : 📣 Homepage : 2024-03-21, 18:30 (KST)