The Bank of Korea(BOK) says it will keep a close eye on changes in the nation's financial and foreign exchange markets and take timely measures to stabilize the markets should volatility expand. 

The central bank revealed the stance during a meeting chaired by Senior Deputy Governor Lee Seung-heon on Thursday. The meeting was held to review the possible impact that the U.S.’ move to raise its benchmark short-term interest rate by zero-point-five percentage points on Wednesday could have on domestic markets.

Lee said though concerns about the U.S. tightening its monetary policy have eased with the Federal Reserve slowing the pace of its interest rate hikes, the possibility that financial markets will see more volatility cannot be ruled out amid woes over a global economic recession and possible policy changes that major economies could take to fight inflation. 

With the latest hike, the Federal Reserve’s new target range now stands at four-point-25 percent to four-point-five percent.

The half-point rate hike came after four consecutive 75 basis point moves in June, July, September and November.

The Bank of Korea’s benchmark rate is now one-point-25 percentage points lower than the Fed’s.