IMF opposes rate cut

IMF opposes rate cut

SEOUL (AFP): A senior official of the International Monetary
Fund (IMF) yesterday rejected South Korea's request that it be
allowed to lower interest rates, citing a still unstable foreign
exchange market.

"We have to be very cautious in bringing them back (to earlier
lower levels of interest rates)," said Hubert Neiss, head of the
International Monetary Fund (IMF) team working in South Korea.

"Before bringing them back, we have to be very sure that the
market remains stable," he said.

"We have to wait a little more time to be sure the market in
Korea is stable. And then, we can cautiously bring them back," he
told journalists.

He made the remarks before he entered into talks with South
Korean Finance Minister Lim Chang-yuel on a review of economic
targets, including interest rates and money supply.