The head of South Korea's central bank Wednesday ruled out the possibility of the recent U.S. rate hike immediately prompting his country to raise its own interest rate, saying that any change to the key rate depends on a number of factors.

"The United States' key rate is of course a very important factor to consider when deciding our key rate, but the Bank of Korea does not immediately raise its key rate simply because the U.S. does so," Lee Ju-yeol said in a monthly meeting with a group of economists here.

Last week, the U.S. Federal Reserve raised its key rate to a target band of 0.25-0.50 percent, from 0-0.25 percent, marking its first rate hike in nearly a decade.

Many have insisted that the BOK must also increase its own policy rate soon to help prevent a possible outflow of foreign capital.

The BOK governor has repeatedly rejected the idea.

"A rate hike by the U.S. Fed does not (directly) lead to a rate hike by the BOK. Should the BOK decide to raise its rate, it will be based on all global factors such as movements in the global financial market and economic conditions in newly emerging market countries, and not only the U.S. rate hike itself," he said earlier.

Some, apparently including figures in the government, have called on the South Korean central bank to further slash its key rate that it has kept at a record low of 1.5 percent for the past six months.

They insist a lower rate will help revitalize the local economy hampered by weak spending and even weaker exports. Such a demand has been growing, especially after the BOK set its inflation target at 2 percent for the 2016-2018 period while the country's consumer price inflation has remained under 1 percent for over a year.

Lee dismissed such a call, noting the inflation target was again only one of many factors to be considered and that it was a long-term policy goal.

"I want to stress that the inflation target is a long-term objective and not a short-term goal," he told the meeting. "The BOK will adjust its key rate by monitoring macroeconomic conditions while also carefully considering local conditions." (Yonhap)