By Cynthia Kim and Jihoon Lee

SEOUL (Reuters) – South Korea’s central bank kept policy interest rates unchanged on Thursday as a resurgence in home prices and a declining currency against the dollar reduced the scope for further easing.

The Bank of Korea’s seven-member monetary policy board voted to keep its benchmark interest rate unchanged at 2.50%, an outcome expected by 33 of 35 economists polled by Reuters.

The median expectation is now for one more cut in November and then a prolonged pause, as analysts expect policymakers to put more emphasis on managing risks related to financial stability amid an overheating housing market and uncertainty over a U.S. trade deal.

South Korean policymakers have been taking a tactical approach to support an economy hit by former President Yoon Su

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