South Korea's central bank chief has reiterated now is not the time to cut the policy rate despite a dovish stance by the U.S. Federal Reserve.

Following the Fed's decision to rule out rate increases this year, Bank of Korea(BOK) Governor Lee Ju-yeol said on Thursday that the Fed's eased stance will bring stability to the global financial market and offer more room for authorities in Seoul to manage policies.

However, Lee said that it is still too early to cut the key interest rate and that he will take into account the situation overseas, especially the economic cycles of the Chinese and European economies, before making a policy change.

The BOK has held the benchmark rate steady at one-point-75 percent since it lifted the rate by point-25 percentage point in November 2018.