Bank of Korea Gov. Rhee Chang-yong said Tuesday the time has come to "sufficiently consider" a rate cut as the nation's consumer inflation cooled.

"In terms of stability of consumer prices, it is time to sufficiently consider lowering a benchmark interest rate," Rhee told reporters at a forum in Seoul.

Rhee said the central bank would review an "appropriate timing" for a rate cut, in his strongest signal yet about a policy pivot.

In a meeting of the parliamentary budget committee on the same day, Prime Minister Han Duck-soo said, "Consumer prices began to stabilize at around 2 percent compared to last year, generating room for rate cuts."

Earlier in the day, government data showed consumer prices slowed to the lowest level in nearly 3 1/2 years in August.

Consumer prices, a key gauge of inflation, rose 2 percent on-year last month, compared with a 2.6 percent on-year rise a month earlier, according to Statistics Korea.

The government has said the country is projected to reach the target rate of 2 percent by around the end of 2024.

Last month, the BOK held its key rate steady at 3.5 percent for the 13th straight session due to soaring home prices but opened the door for a policy pivot this year. (Yonhap)