The head of the Bank of Korea(BOK) says it will be difficult to lower the nation’s benchmark interest rate before the end of the year.

Rhee Chang-yong made the remark on Friday in a lecture given at a forum organized by the Korea Chamber of Commerce and Industry in Jeju.

He said that with the government aiming for inflation at two percent, the framework of macroeconomic policies could be rattled if it goes up following a cut in the key interest rate.

Rhee, in particular, cited an increase in household debt for three months when the key interest rate stood at three-and-a-half percent.

On the economic outlook, the governor said he believes the economy will rebound, though it may not come rapidly, adding that the bank is maintaining its economic outlook for this year at one-point-four percent due to uncertainties over China’s economy.

He said the nation is, in the short-term, highly-dependent on semiconductors, adding that economic growth could expand depending on how fast and by how much semiconductor prices go up.