Consumer sentiment in South Korea improved for the second consecutive month in July amid growing expectations the U.S. Federal Reserve will cut rates. 

According to the Bank of Korea(BOK) on Wednesday, the composite consumer sentiment index rose to 103-point-six in July, up two-point-seven points from the previous month. 

The index, which gained two-point-five points in June, grew for the second straight month. 

A reading above 100 indicates optimists outnumber pessimists. 

The BOK said consumer sentiment improved due to U.S. Fed rate cut expectations and a rise in housing prices.

Inflation expectations for the year ahead marked two-point-nine percent in July, down zero-point-one percentage point from the previous month, falling to the two-percent range for the first time in 28 months.