Fed Rate Hike Puts Pressure on BOK to Tighten Further

The Federal Reserve raised its benchmark interest rate to 3.75-4 percent on Wednesday, citing stubborn inflation and projecting another increase this year.

This move has put pressure on the Bank of Korea (BOK) to tighten its monetary policy further, as the gap between Korea's and the US' benchmark interest rates widened to up to 1 percentage point.

The BOK raised its policy rate by 25 basis points in July and August to 3 percent, but signaled that further rate hikes remain possible. The bank will closely monitor domestic financial and foreign exchange markets with heightened vigilance.