It's time now for an in-depth look at the markets this afternoon, and for that I'm joined on the line by Dr. Kim Seiwan, professor of economics at Ewha Womans University.
Dr. Kim, thank you for coming on today.
Yesterday, President Moon met with the leaders of Korea's five parties to talk about how Korea can respond to Japan's trade restrictions. They of course called on Japan to cancel these measures, but they also agreed to form a national committee to handle the response. What do you think of that? Is that an adequate response, and has Korea given Japan a strong enough warning?
The Bank of Korea yesterday cut its key interest rate by 25 basis points. This was unusual because it acted before seeing what the Federal Reserve is going to do. Did it do that because of the Japan situation?
We are of course expecting a rate cut from the Fed too at the end of this month. Will there be more cuts later in the year, possible from the Bank of Korea? The BOK is lower than the Fed right now.
Japan is planning to take Korea off its whitelist of trading partners. There'll be a public hearing on this next Wednesday. There is some public opposition to this in Japan. Do you think it's enough to cause Japan to change course?
Now, if Korea is taken off the white list, what products will that affect and how big would the impact be on the economy?
Alright, Dr. Kim. Very interesting discussion. We'll have to leave it there, though.
Thanks so much for coming in, and have a great weekend.