A state-run think tank forecasts that the U.S. Federal Reserve Board will likely lower interest rates by an additional quarter percentage point in the third quarter of the year.

The Korea Center for International Finance said the move will have a positive effect on South Korea's exports, stock market and exchange rates.

In a report released Wednesday, the institute said that the Korean economy will begin recovering in the fourth quarter if the recent series of interest rate cuts by the Fed encourages early economic recovery in the United States during the third quarter.

The report said the Fed's rate cuts will, not only have a positive impact on the global economy but, enhance the possibility of an early economic recovery for the United States.