Deutsche Bank Juliana Lee on Prospects for Korea, China Economy

The transcript discusses the challenges faced by central banks in balancing economic recovery with inflation and COVID-19 risks. It highlights the impact of rising food inflation on Asian economies and predicts which central banks might hike rates first. The discussion also covers China's strategies to manage inflation and stimulate domestic demand.

What is a key challenge for central banks in managing economic recovery?

• Managing foreign exchange reserves

• Increasing interest rates rapidly

• Balancing growth with inflation

• Reducing unemployment rates

Which country is expected to be among the first to implement a rate hike?

• Japan

• New Zealand

• Korea

• India

Why are soft commodities more significant in the inflation outlook than fuel?

• They impact inflation more than fuel

• They are less affected by global demand

• They have a higher price volatility

• They are easier to import

What is a major factor slowing down recovery in southern Asian economies?

• Trade restrictions

• Political instability

• Recurring coronavirus cases

• High interest rates

What might prompt central banks to raise rates despite weak recovery?

• Strong GDP growth

• Stable inflation

• Currency pressures

• High employment rates

How is China attempting to manage inflation shocks?

• Expanding fiscal policies

• Decreasing interest rates

• Increasing export taxes

• Reducing import taxes

What role does vaccination play in China's economic strategy?

• It reduces government spending

• It boosts consumer confidence

• It lowers import costs

• It increases export demand