FILE PHOTO: The logo of the Bank of Korea is seen on the top of its building in Seoul, South Korea, March 8, 2016. Picture taken on March 8, 2016. REUTERS/Kim Hong-Ji/File Photo

By Cynthia Kim and Jihoon Lee

SEOUL (Reuters) -South Korea's central bank held policy interest rates steady for a second straight review on Thursday amid concerns about housing market risks but flagged further easing to counter the hit to growth from U.S. tariffs.

The Bank of Korea's monetary policy board voted 6-1 to keep its benchmark interest rate unchanged at 2.50%, in line with expectations. It also revised up growth forecast for this year to 0.9% from 0.8% previously, which would still mark the slowest expansion since 2020.

"There is a big chance for the current easing stance to stay at least through the first half of next year as growth is likely to stay low until the first half, in quarterly terms, before it reaches close to (the economy's) potential rate in the second half," Governor Rhee Chang-yong said in a news conference.

Shin Sung-hwan, known for favoring lower interest rates, made Thursday's sole dissenting vote and called for an immediate 25 basis point cut.

With the U.S. Federal Reserve inching toward a rate cut, analysts expect the BOK to resume easing in the fourth quarter as the sputtering economic recovery reduces concerns about an uptick in inflation.

The BOK highlighted headwinds from the new tariffs set to hit Asia's fourth-largest economy, which has been slapped with a 15% levy for key Korean suppliers of cars, smartphones and machinery.

But any further easing should be measured, Rhee added, to ensure it does not add unnecessary liquidity to Seoul's property market, which has a price-to-income ratio of 21.3, above 19.4 for London and 12.4 for Sydney.

"It is necessary to further assess whether it will remain on a sustained path of stability while housing price appreciation in Seoul and its surrounding areas and household debt growth have moderated," the BOK said in a statement.

A total of four rate cuts since last year has fueled concerns over rising household debt, while uncertainty over U.S. tariffs has had an outsized impact on South Korea's trade-reliant economy and its investment.

Exports increased for a second straight month in July on solid chips and car sales, thanks to front-loading of shipments to avoid any increase in U.S. tariffs.

"Rhee's comment about growth staying weak through the first half somewhat is in line with market's expectations about two additional rate cuts," said Ahn Jae-kyun, an analyst at Korea Investment Securities.

Ahn sees the policy interest rate reaching 2.0% by the end of June next year.

Rhee declined to comment on the terminal rate but has repeatedly said the BOK may not need to cut as much as global peers as it didn't tighten policy as much during the pandemic.

(Reporting by Cynthia Kim; Editing by Sam Holmes)