The government forecast that the additional quantitative easing by the European Central Bank would have a limited impact on the nation’s economy, saying the measure was within market expectations.

“The ECB’s expansive monetary policies are part of (the BOK’s) forecasts,” Bank of Korea chief Lee Ju-yeol said in a breakfast meeting with commercial bank chiefs in Seoul on Friday.

“If the measure had diverted from market forecasts, there would have been a shock,” the central bank chief added.

There is cautious optimism in domestic markets that the ECB’s action may boost the nation’s exports to the region. But the central bank chief said he did not see the move as a dramatic export booster.

Lee said the nation needs to watch carefully Europe’s development, forecasting that the world would be more sensitive in managing risks as the QE measure was taken at a time when oil prices continue to drop.

The meeting was held one day after the ECB announced it would spend 60 billion euros ($68 billion) a month from March 2015 to September 2016, to buy assets including sovereign and private-sector bonds. It is hoped the injection will help curb deflation threats and create greater market liquidity.

In the meantime, the Finance Ministry hinted that the government would closely monitor foreign exchange markets as European funds could flow into domestic financial markets.

If more euros are released into the market, leading to a depreciation of the common currency vis-a-vis the U.S. dollar, such a development could help South Korean companies with manufacturing plants on the continent, a senior ministry official was quoted as saying by Yonhap.

By Chung Joo-won (joowonc@heraldcorp.com)