Bank of Korea(BOK) Governor Rhee Chang-yong forecast that the impact of a rate cut on domestic consumption would be limited and delayed.

Speaking to reporters after the BOK's rate freeze on Thursday, Rhee said the reduced consumption has been assessed to be structural and linked to employment trends.

The central bank chief said employment among people in their 20s to 40s is declining, while employment among seniors is rising, reflecting the nation's structural population decrease.

While a rate cut would help vulnerable groups and small business owners with debt repayment, Rhee said the interbank rate has already dropped even before a key rate cut was implemented.