Bank of Korea(BOK) Governor Rhee Chang-yong said on Monday that inflation is likely to remain in the three-percent range until the end of this year.

He presented the projection during a session of the parliamentary committee on strategy and finance. 

Asked about the U.S. Fed's hikes that widened the rate gap with South Korea to a record one-point-75 percentage points, Rhee said that the effect of the large gap has already been reflected in the won-dollar exchange rate months ago.

The governor then projected that if America cuts key interest rate or issues a signal for cuts, the local currency is likely to strengthen against the dollar. 

The central banker also rejected criticism that despite the hikes in the key interest rate, financial authorities are pressing banks from raising rates for bank deposit and loans, reducing the impact of monetary policy.

As for a planned cut for the nation's growth outlook for this year, Rhee said that the bank will slightly lower its outlook from the previous projection of one-point-six percent.