'South Korea interest rates could be raised'

South Korea's finance ministry said on Sunday local interest rates could be raised if the economy showed a clear recovery pattern and that it would fully respect whatever the central bank decides.
The remark contrasts with the ministry's stance held until recently that it wanted local borrowing costs not to be raised from the current record-low level to help Asia's fourth-largest economy secure more sustainable growth.
It also came a week ahead of a key central bank policy meeting, where investors expect interest rates to be raised for the first time in more than three years in line with comments made by the central bank chief in early September.
"The finance ministry thinks (the central bank) can consider changing the monetary policy direction if the economy shows a clear recovery trend," the ministry said in a written answer to a ruling party lawmaker's question.
"Please be informed that the Ministry of Finance and Economy respects the monetary policy committee's views and decision regarding the monetary policy such as the call rate," it added.