Seoul: The Bank of Korea is anticipated to encounter increased pressure to further elevate its benchmark interest rate following the U.S. Federal Reserve's recent decision to raise its rate for the first time in over three years. This move by the Fed aims to combat rising inflation, as noted by financial analysts on Thursday. According to Yonhap News Agency, the Federal Reserve raised its benchmark interest rate by a quarter percentage point, marking the first hike since July 2023. The new range of 3.75-4.00 percent comes amidst persistent inflation and high oil prices, with signals of a potential further increase later this year. This development has widened the interest rate gap between South Korea and the United States to up to 1 percentage point. The Bank of Korea had previously increased its benchmark interest rate to 3 percent over consecutive meetings in July and August, marking the first consecutive hikes since early 2023. Analysts suggest that the combination of rising inflation, a strengthening cu rrency, and high household debt will likely drive the BOK to consider another rate hike before the year's end. BOK Senior Deputy Gov. Kwon Min-soo chaired a meeting on Thursday to evaluate the potential impacts of U.S. interest rate policies on South Korea's financial and foreign exchange markets. During this meeting, Kwon highlighted the Federal Reserve's ongoing monetary tightening stance, as indicated by Fed Chair Kevin Warsh. He also noted existing risks related to Middle East tensions, fiscal concerns in major economies, and uncertainties in the artificial intelligence sector. Kwon stated that the central bank would remain vigilant and closely monitor domestic and international financial markets, as other major economies like Japan and Britain are also set to decide their key interest rates this week. The BOK is likely to consider raising the key rate in November rather than October, taking into account the effects of consecutive rate hikes. Kim Myung-sil, an analyst at iM Securities, pointed out that the minutes from the August monetary policy meeting reveal the central bank's focus on the timing and pace of future rate hikes. The BOK, in its latest monetary policy report, emphasized the need to assess domestic and external conditions amidst ongoing inflation and robust economic growth. South Korea's strong economic performance, with nominal GDP growing at its fastest rate in 47 years during the second quarter, further supports the possibility of a rate hike. This growth has been driven by strong exports and investments related to artificial intelligence. Experts believe the expanded interest rate gap, along with high housing prices in Seoul and surrounding areas, will continue to pressure the BOK to maintain its hawkish stance on monetary policy.