The Bank of Korea(BOK) says uncertainty remains as to when and to what extent the U.S. Federal Reserve will cut its key interest rate after Fed Chair Jerome Powell signaled a potential rate cut next month.

BOK Senior Deputy Governor Ryoo Sang-dai disclosed the assessment on Thursday during a meeting on monitoring market conditions after a meeting of the Federal Open Market Committee(FOMC) was held on Tuesday and Wednesday. 

While the FOMC maintained the target range for the federal funds rate at five-point-25 to five-point-five percent, Powell had suggested the possibility of cutting the rate in September. 

Also on Thursday, Ryoo stressed that the central bank will keep a close eye on risks to financial stability which continue to exist despite changes in financial conditions both at home and abroad. 

He cited the surge in housing prices in the Seoul metro area, the rise in household debt and increased volatility in the foreign exchange market as such risks.