Bank of Korea(BOK) Governor Lee Ju-yeol says that the latest rate hike by the U.S. Federal Reserve will have a limited impact on the domestic market.

The U.S. Federal Reserve raised the lending rate by a quarter of a percentage point to a range of two percent to two-point-25 percent Wednesday and signaled one more rate hike within this year.

The BOK chief told reporters on Thursday that the hike will have a limited impact on the local financial market as it was widely expected and the Fed's outlook for additional hikes is also not much different from the market forecast. 

Regarding a possible increase in South Korea's benchmark rate, Lee said there is a need to curtail monetary easing slightly considering macroeconomic conditions.

Meanwhile, the central bank, the Finance Ministry and the Financial Services Commission will hold a meeting on Thursday morning to discuss measures in response to the U.S.’ latest rate hike. 

The meeting is expected to check and assess a possible capital outflow, movements in global financial markets and foreign currency liquidity.