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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World S.Korea finmin "careful" on interest rate policy Reuters - Tuesday, May 4 Send IM Story Print TASHKENT, May 3 - South Korean Finance Minister Yoon Jeung-hyun said on Monday he was careful when considering interest rate policy, but added arguments that he was focusing only on economic growth were wrong. Investors are closely eyeing even a small change in the way he expresses his views because they are highly uncertain about when the government, so far opposed to an early interest rate increase, will agree to a policy shift toward tightening. "Currently the government is not leaning toward growth at all," he told South Korean journalists over a breakfast meeting in Tashkent, where he was attending the Asian Development Bank's annual meetings and related events. "If you think about if households or smaller companies have improved enough to weather higher interest rates, you would become hesitant ," he said. "But there are also a lot of problems in keeping interest rates." He said as recently as last month that it was premature to carry out an exit strategy although he did not specifically mention the interest rate at that time. Commenting on the stronger-than-expected economic growth in the first quarter of the year, Yoon called for caution, noting the growth rate measured over a year earlier could slow in the second quarter from a 4-year high of 7.8 percent in the first. He listed bad weather conditions in April and a possible drag on consumption from heightened tensions with North Korea, but did not elaborate on bigger factors such as exports, which came out strong in April. "Please don't be impatient on the interest rate issue but watch how things go," Yoon added. The Bank of Korea has held the policy interest rate <KROCRT=ECI> steady at record-low 2 percent for the past 14 consecutive months after reductions totalling 325 basis points. It next reviews the 7-day repurchase agreement rate on May 12. Recommend Send IM Story Print Related Articles Pinstripes, pitchforks and profits Reuters - 37 minutes ago US-BUSINESS Summary Reuters - 38 minutes ago Abu Dhabi National Hotels says to double assets in 3 yrs Reuters - 38 minutes ago GM April U.S. sales rise 6 percent Reuters - 39 minutes ago Saudi money supply growth slows to 4.6 pct in March Reuters - 41 minutes ago News Search Top Stories US inflation up 2% in March United, Continental to form world's biggest airline Greece rushes austerity cuts as anger builds Election recount under way in Baghdad Obama defends his US oil slick response More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Shroud of Turin 'mirrors' human suffering: pope Obama defends his US oil slick response United, Continental to form world's biggest airline Higgins's snooker future in question over match-fixing claims Obama jokes about his ratings and nationality More Most Viewed » Aliens may exist but contact would hurt: Hawking Apple engineer loses iPhone prototype French driving veil row escalates Airlines want compensation as Europe's skies reopen More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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