Bank of Korea Governor Lee Ju-yeol has forecast that despite the terror attacks in Paris, the U.S. Federal Reserve is expected to raise its key interest rate next month.
 
He made the remark during a breakfast meeting with corporate CEOs at the Korea Chamber of Commerce and Industry Tuesday morning. 
 
The central bank chief said a U.S. rate hike is very likely in December considering remarks made by Federal Reserve Chairwoman Janet Yellen.
 
On why the Fed would raise the rate despite unclear signs of economic recovery in the U.S, Lee said that risk-seeking in the financial sector has grown excessive due to the protracted low interest rates.
 
Lee also expressed strong concern over a possible increase in private sector debt levels in emerging economies, following a U.S. rate hike, which could trigger financial instability in the global economy.
 
Noting that one of the risks posed by emerging markets is their excessive amount of private sector debt, Lee said global financial jitters could considerably escalate if the U.S. rate hike is coupled with the slowing Chinese economy.