SEOUL, Aug 22 Reuters South Korea39;s central bank kept interest rates unchanged on Thursday but revived expectations for an imminent policy easing that some economists see happening as soon as October as growth concerns overshadow inflation worries.

The Bank of Korea BOK held the benchmark interest rate at 3.50 in a unanimous decision, an outcome expected by 38 out of 40 economists surveyed by Reuters.

Governor Rhee Changyong, however, said four of the bank39;s seven voting members were open to a rate cut within the next three months.

In its decision statement, the BOK said the bank now needs to examine the proper timing of rate cuts while maintaining a restrictive monetary policy stance.

With price pressures cooling and the recovery grinding to a halt in the second quarter, economists expect the BOK to step back from policy aimed at cooling demand.

That could mean cutting interest rates at its next policy meeting on Oct. 11, around the same time the U.S. Federal Reserve is widely expected to deliver its first rate cut in four years.

Looking at inflation alone, we are heading towards the right conditions for interest rate cuts, Rhee said in a news conference.

South Korea39;s threeyear treasury bond futures extended gains after Rhee39;s news conference on expectations interest rates will now come down.

It was neutraltodovish, said Paik Yoonmin, an analyst at Kyobo Securities, who sees a cut in October.

Markets were expecting about three board members would be…