South Korea's central bank kept its benchmark interest rate unchanged at 2.5% Thursday, extending a pause since May, as policymakers continued to flag household debt as a key risk.

The decision was in line with expectations from economists polled by Reuters, and followed the introduction of tighter property measures in Seoul aimed at curbing borrowing.

In a statement released Thursday, the Bank of Korea cited stable inflation and improving economic growth outlook as the main reasons to extend the pause, while flagging that it was monitoring stability in the housing market and household debt.

"Domestic demand is expected to continue its recovery, led by consumption, and exports are likely to remain favorable for some time owing to the strong semiconductor sector, the central bank said.

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