Anchor: The U.S. Federal Reserve raised interest rates again on Wednesday, widening the rate gap with South Korea to point-75 percentage point. Bank of Korea chief Lee Ju-yeol said there will be a limited impact on the South Korean financial market over the widely anticipated move, but still hinted at tighter monetary policy to come. 
Kim In-kyung has the details.  

Report: 

[Sound bite: US Federal Reserve Chairman Jerome Powell]
"Today the committee raised the target range for the federal funds rate by a quarter percentage point bringing it to two to two and a quarter percent." 

Fed Chairman Jerome Powell highlighted the strength of the U.S. economy in a press conference after the U.S. central bank's third rate hike this year on Wednesday.  

[Sound bite: US Federal Reserve Chairman Jerome Powell]
"Our economy is strong. Growth is running at a healthy clip. Unemployment is low, the number of people working is rising steadily and wages are up. Inflation is low and stable. All of these are very good signs." 

But the good news stateside is cause for concern in South Korea. Korea's benchmark interest rate is now point-75 percentage point lower than the U.S., which could potentially lead to a capital outflow. 

Bank of Korea(BOK) Governor Lee Ju-yeol waved off the concerns, saying the hike will have a limited impact on local financial markets as it was widely expected. He added that the Fed's outlook for additional increases is also not much different from the market forecast. 

Asked whether it's time for the BOK to consider boosting rates, Lee said there is a need to curtail monetary easing considering macroeconomic conditions. He said the next monetary policy meeting is in three weeks and that the bank will make its decision based on economic indicators and other variables such as the U.S.-China trade war. 

The BOK had already signaled tighter monetary policy, with one of its board members calling for a quarter percentage point increase since July in the face of surging real estate prices. However, the bank is in a bind as growth is stalling and unemployment reached its highest point last month since the Asian financial crisis nearly 20 years ago.

Officials from the central bank, the Finance Ministry and financial regulators held a meeting Thursday morning to discuss measures in response to the Fed hike. Vice Finance Minister Ko Hyoung-kwon said the government will thoroughly review effects on domestic financial markets and step up its monitoring of foreign fund outflows. 
Kim In-kyung, KBS World Radio News.