Bank of Korea(BOK) Gov. Rhee Chang-yong said Thursday that a rate cut would be appropriate considering the current state of the economy, but cited the weak currency in explaining the latest rate freeze.

The remarks come after the BOK’s Monetary Policy Committee decided earlier in the day to keep the benchmark interest rate unchanged at three percent.

During a press briefing, the BOK governor said the Committee decided it would be best to take a breather and gauge the impact of two previous rate cuts and determine whether another downward adjustment is needed.

Rhee explained that political changes in the country are having a significant impact on the exchange rate, adding that the current exchange rate is much higher than what can be explained by the fundamentals of the country’s economy or the interest rate gap between South Korea and the United States.

He stressed that interest rates affect not only the economy but also many other variables, adding that policymakers need to consider all factors together.

Rhee said that considering the political repercussions of President Yoon Suk Yeol’s martial law move in December and uncertainties surrounding the incoming Donald Trump administration in the United States, the central bank needed to take a cautious step after taking its two previous rate cuts into account.