SEOUL, July 30 Reuters South Korea39;s monetary policy board was divided over when to cut interest rates with a majority of the sevenmember board concerned about lower borrowing costs leading to price increases in the housing market, July meeting minutes showed on Tuesday.

The Bank of Korea said at the meeting that it was time to prepare for a pivot to interest rate cuts after leaving the benchmark interest rate steady at a 15year high of 3.50 for the 12th straight meeting, as expected.

While the decision was unanimous, the sevenmember board appeared divided over when to act, as some fretted that lowering rates could lead to price increases in Seoul39;s already expensive housing market, while others were increasingly focused on preserving a soft landing for the economy.

At least five board members said financial stability risks were of concern to the central bank due to rising home prices.

In summary, inflation is easing towards the banks target level but we should still be on alert for upside risks, and risks related to a reduction in interest rates are bigger now due to household debt increases and the home price increases we see now, one of the seven board members said.

Worries about inflation have recently been replaced by concerns that household debt is increasing fast and consumption is slowing rather too quickly.

Any interest rate reductions should be carried out after factoring in the mediumterm inflation level in relation to our inflation target,…