Policy rate held at 3.50, as expected in Reuters poll
One board member wants to keep door open for rate cut or hike
BOK says reaching target inflation level will take longer

SEOUL, Oct 19 Reuters South Korea39;s central bank kept interest rates unchanged on Thursday, retaining a tightening bias on monetary policy as it warned of inflationary risks from the IsraelHamas conflict and global oil prices.

The Bank of Korea BOK said that price pressures would persist and it could take longer for consumer inflation to reach its target level than previously expected.

Uncertainties increased over global economic growth and inflation compared with the last meeting in August on the prospect of tightening policies lasting longer in major countries and the IsraelHamas conflict, the BOK said.

The central bank reaffirmed its commitment to maintain a restrictive policy stance for a considerable time with an emphasis on ensuring price stability.

The central bank39;s sevenmember monetary policy board unanimously voted to keep the base rate at 3.50, as expected by all 49 economists polled by Reuters.

Governor Rhee Changyong told a press conference one board member sought to leave the door open to adjust the policy rate either way, as risks to growth remain elevated.

Looking at comments made by board members today, one said the BOK should remain flexible to cut interest rates as there are both upside and downside risks to growth, while others said inflation control should be our…