BOK board members say policies need to address financial imbalances, stays wary of further easing -minutes

SEOUL, Aug 4 (Reuters) - Some board members at the Bank of Korea said the financial imbalances stemming from rampant property prices deserves bigger attention by policymakers setting interest rates, minutes released on Tuesday of the July 16 board meeting showed.

“As household debt increases along with rising property prices, addressing of financial imbalances needs to take bigger slice out of our attention when conducting monetary policies,” a board member said, as the seven-member board unanimously voted to keep its seven-day repurchase rate at 0.5%.

Most other members agreed policy rates need to stay loose for the time being to help the virus-hit economy, as the BOK sees the trade-dependent economy shrinking more than expected due to the resurgence of the pandemic.

One board member said the bank should expand outright purchase of treasury bonds to stabilize markets.

Only dissenters are identified in the minutes.

Reporting by Cynthia Kim, Joori Roh, editing by Louise Heavens