The International Monetary Fund (IMF) has forecast South Korea will hit its inflation target of two percent by the end of next year.

The IMF released its projection in a report on the South Korean economy on Friday, forecasting the country’s inflation rate to continue to slide to three-point-six percent this year and two-point-four percent next year. 

The inflation outlook, however, represents an increase of zero-point-two percentage points for this year and point-one percentage point for next year from earlier projections released in October. 

The latest report comes after an IMF team made a two-week visit to South Korea through early September for an annual meeting with the finance ministry, the Bank of Korea (BOK) and other institutions to discuss the country's economy and policy measures.

The IMF advised the Seoul government to maintain its current high interest rate policy to stabilize prices, and to refrain from easing monetary policy.

The IMF maintained its growth outlook for South Korea for this year at one-point-four percent and two-point-two percent for next year.