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BOK rate review minutes confirm steady policy

SEOUL, Sept 15 (Reuters) - Board members at the Bank of Korea said current monetary policy needs to be maintained to support the country’s flagging economy, minutes of its August meeting showed on Tuesday.

The minutes did not indicate any policy action was imminent, but board members reiterated the financial imbalances stemming from rampant property prices should continue to be monitored.

“Going forward, policies need to stay accommodative until the impact from the COVID-19 weakens and some progress on the economic recovery is seen,” a board member said, as the seven-member board unanimously voted to keep its seven-day repurchase rate at 0.5%.

In its August 27 meeting, the BOK sharply downgraded its 2020 growth outlook and suggested it was willing to expand the use of policy tools other than benchmark interest rates.

Another board member said policymakers must keep stimulus to aid the economic recovery, and take targeted approach to support those hit hardest from the pandemic.

Only dissenters are identified in the minutes.

Reporting by Cynthia Kim; Editing by Simon Cameron-Moore