The Bank of Korea(BOK) says that it will take stabilization measures if the U.S. interest hikes promote market jitters at home.
 
The BOK said in a report to the parliamentary financial committee on Thursday that it will continue an expansive monetary policy, noting the gradual growth of the economy and low inflationary pressure.
 
While suggesting its priority is maintaining financial stability rather than increasing its key rate, the central bank added that the shocks are expected to be small if the U.S. rate is raised gradually. 
 
The central bank did acknowledge, however, that the U.S. rate hikes could pose difficulties for the South Korean economy, such as a possible capital outflow and a higher interest rate on household loans.