Bank of Korea(BOK) Governor Lee Ju-yeol says he will closely watch the situation as the U.S. Federal Reserve raised its key interest rates to higher than South Korea's.

The BOK chief told reporters on Thursday that the Federal Open Market Committee's latest statement regarding the rate hike may indicate the Fed is employing a hawkish monetary policy, but the hike has been widely expected in the market. 

Lee projected the hike will have little impact on the domestic financial market, but promised to keep vigilant and take measures in case of sudden changes in the market. 

The U.S. Federal Reserve on Wednesday lifted the U.S. key rates up to the one-point-five to one-point-75 percent range, higher than the Korean rate of one-point-five percent. 

The latest increase of 25 basis points resulted in the first "reversal" of interest rates between the U.S. and South Korea in nearly eleven years.