South Korea Minister Rules Out Imminent Economic Stimulus; South Korea Finance Minister Choi Kyung-hwan's Comment Suggests Central Bank Won't Cut Rates Next Week
South Korea's economy doesn't need any fresh pump-priming for now, the nation's finance minister said, a remark likely to moderate expectations for a central bank rate cut next week.</br></br>"We believe...we will be able to boost consumer and corporate confidence without additional expansionary policies on the monetary or fiscal front," Choi Kyung-hwan said in an interview with The Wall Street Journal in New York on Thursday.</br></br>Mr. Choi's comments come after South Korea's exports, a key economic engine, rebounded sharply in September due to a turnaround in shipments to China and robust demand from the U.S. However, a weak domestic economy remains a worry for policy makers in Seoul.</br></br>While ruling out further imminent stimulus, Mr. Choi said policies aimed at supporting growth would continue for a "considerable time" to underpin the momentum of South Korea's recovery. In July, the government announced a $40 trillion stimulus program, while the central bank in August cut its policy rate to a near four-year low of 2.25%.</br></br>"We need to keep sending the message...that such expansionary policy will continue for the time being," he said.