Bank of Korea Governor Rhee Chang-yong says the bank cannot, at the present time, fully rule out the possibility of taking a big step, apparently referring to a single increase in the benchmark interest rate by half a percentage point.

Rhee made the remark on Monday to reporters following a breakfast meeting with finance minister Choo Kyung-ho. He was responding to a question about the difference in the key interest rate of South Korea and the U.S.

Rhee said there is no need to consider taking such a big step when looking at the conditions up to April. However, he was quick to add that the bank would need to decide whether to take such a step by observing how much consumer prices will go up in the coming months.

The bank chief said that given the high inflation rate of eight percent in the U.S., expectations that the U.S. key interest rate will be raised by 50 basis points at least twice have been already factored into the market.

He said that although inflation in South Korea is also high, it is better to devise measures regarding the nation’s interest rate based on growth and consumer prices instead of solely on the difference in the rate with the U.S. given that South Korea’s economic conditions are very different from that of the U.S.