SEOUL, July 6 The IMF on Tuesday raised its 2010
economic growth forecast for South Korea by more than one
percentage point, and recommended the country's central bank
gradually raise interest rates.
The IMF upgraded its this year's economic growth forecast for
Asia's fourth-largest economy to 5.75 percent from 4.5 percent on
its supportive macroeconomic and financial policies and a
recovery in global trade.
"In light of the strong economic recovery, a carefully
calibrated exit from supportive macroeconomic policies is
appropriate," IMF said in a statement.
"It is now appropriate for the Bank of Korea to start
gradually raising the monetary policy rate...beginning to raise
the policy rate would still leave monetary policy highly
supportive of the recovery," it said.
The upgrade and remarks come before the central bank is
scheduled to hold an interest rate-setting meeting on Friday.
(Reporting by Cheon Jong-woo; Editing by Jonathan Hopfner)