SEOUL, July 6 (Reuters) - 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)