GLOBAL ECONOMY
Corporate Risks of Waiting Solely for US Interest Rate Cuts
While the US Federal Reserve kept rates on hold in July with three members demanding hikes, the Bank of Korea raised its base rate in August. Ahead of the September FOMC, we examine the conditions of the policy path through inflation and labor data. We analyze the impacts on South Korean companies by dividing them into exchange rates, foreign currency debt, and customer demand, and suggest reviewing maturity management, currency-specific cash flows, and contract terms.

Corporate Risks of Waiting Solely for US Interest Rate Cuts Exchange rates, borrowings, and demand must be reviewed together in preparation for the Fed's potential rate freeze or hike Is the strategy of delaying facility investments until US interest rates drop and keeping loan maturities short still valid today? Policy and economic indicators confirmed as of September 14, 2026, demonstrate the necessity of reassessing business plans built solely on the premise of interest rate cuts. While the US Federal Reserve kept interest rates frozen at its previous meeting, some members called for hikes, and the Bank of Korea has already raised its base rate. For South Korean companies, what needs to be reviewed is not merely the direction of US interest rates, but the channels through which those changes are transmitted to dollar settlements, borrowing maturities, and customer orders. KBR GLOBAL R…
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