S. Korea expects Fed's rate hike as late as December

South Korea's top central banker on Friday expected the U.S. Federal Reserve to raise interest rates as late as December this year after the U.S. central bank decided not to alter the federal funds rate.

Bank of Korea Governor Lee Ju-yeol told reporters before meeting with heads of local banks that Fed Chair Janet Yellen seemed to make efforts to reach a balance during her press conference despite market rates moving sharply lower by interpreting the Fed's decision as dovish.

The Fed delayed its first rate hike in about nine years, citing economic uncertainties abroad and financial market fluctuation in the past month. But, Yellen commented on the strength of the U.S. economy, indicating that the rate hike is on its way.

Governor Lee said that Yellen did not rule out the possibility of tightening in October as she is set to hold an unscheduled press conference next month.

Lee forecast that the U.S. rate hike in October or December cannot be ruled out because 13 out of 17 members of the Federal Open Market Committee judged the rate increase within this year appropriate.

The governor, however, noted that uncertainties remained over the Fed's rate decision in the future. Endi