Welcome back.
On VIEW POINT... today...
we assess... the impact... of high interest rates... on ordinary people... and their lives...
especially...
as South Korea's benchmark interest rate currently...
stands... above... that... of the U.S.
For more...
I have Professor Choi Sangyup ... from Yonsei University.
Professor Choi... welcome back.
I also have Professor Oh Joon-seok... at Sookmyung Women's University...
live on the line.
Professor Oh... it's good... to have you... on
1) Professor Choi, South Korea's key interest rate stands at 2.25% ... while that in
the U.S. is at 1.75%
Simply speaking...
what are the implications... of South Korea possessing an interest rate... that is stronger...
than that... of the U.S.?
2) Professor Oh...
BOK Governor Rhee Chang-yong has said... the country's base rate will hover... between
2.75% and 3%... by the end of this year.
Can we assume... that inflation...
here on the local front... will be tamed...
by this rate range?
3) Professor Choi... staying with the broader impact... of the BOK's benchmark interest
rate.
How do further hikes... look to affect... loans...
here in the country?
4) Professor Oh... what is the impact... of high interest rates... on investments?
5) And staying with investments...
Professor Choi... do you propose... investments...
beyond Korea... if the BOK's rate continues... to stand... above... that of the U.S.?
6) Professor Oh...
I assume...
higher interest rates would reflect... favorably... on savings accounts?
Do you care to elaborate?
7) Professor Choi... how do you respond... to concerns... that continued interest
rate hikes... raise...
the risk
of recession?
8) Professor Oh... the U.S. Federal Reserve is holding...
its July meeting.
Most believe...
a 75 basis point
increase... will
be announced...
while
a few are predicting...
a 100 basis point hike.
What
are
your prospects?
All right.