South Korea's central bank kept its key rate unchanged at one-point-five percent as it takes a wait-and-see approach following a reduction last month.

The Bank of Korea's(BOK) monetary policy board on Friday voted to maintain the policy rate following a quarter percentage-point cut on July 18, which came earlier than expected by the market. 

Friday's move was widely expected as the board rarely cuts the rate in two consecutive sessions. The freeze also appears to have been influenced by the belief that the U.S. Fed is likely to slow down its own pace of rate cut.

Domestically, surging housing prices in upscale areas of Seoul and increasing household debt were reportedly also taken into account by the board. 

The market expects the central bank to slash the key rate in the next board meeting scheduled on Oct. 16 amid falling economic growth and low inflation. 

The central bank slashed its outlook for this year's economic growth to two-point-two percent from two-point-five percent, while inflation has been hovering below one percent for seven consecutive months. 

External uncertainties stemming from concerns of a global recession and trade disputes are also likely to pressure the central bank to cut rates in October, market analysts point out.