IMF plays down case for South Korea rate cut

SEOUL, June 12: South Korea’s economy will probably grow at a slower pace than seen two months ago during this year but is not weak enough for its central bank to cut interest rates, the International Monetary Fund said on Tuesday.
Asia’s fourth-largest economy is now seen growing by about 3.25 percent this year, lower than 3.5 percent projected in April, the IMF said in a statement released in Seoul after its annual consultation meeting with South Korean officials.
The IMF said South Korea’s policy rate was already at a low level and added the Bank of Korea may need to begin raising it from early next year once the economy regains momentum.