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.