South Korea's CPI rose 2% year-on-year in August, down from 2.6% in July. Four of the seven members of the central bank are currently open to cutting interest rates before the end of the year. Governor Rhee Chang-yong did not disclose his views, but many economists expect the Bank of Korea to start cutting interest rates at its October meeting. Policymakers are now increasingly focused on housing prices in Seoul. The rapid rise in housing prices in Seoul has raised concerns that households will take on more debt and financial imbalances will emerge. Government officials have taken steps to rein in housing prices. Apartment purchases in Seoul fell for the first time in months in August, and sales prices continued to slide. At the same time, weak private spending coupled with factors such as credit risks in the construction industry have increased the reason for the Bank of Korea to consider cutting interest rates next month. The growing likelihood that the Federal Reserve will initiate a policy shift this month also supports the view that the Bank of Korea may follow suit at its next meeting.