The Bank of Korea's (BOK) monetary policy committee, in a unanimous decision, kept the benchmark seven-day repo rate steady at 3 percent for August.

In July the central bank cut the rate by 25 basis points, the first reduction in more than three years, as Europe's protracted debt crisis and China's slowdown weighed on the export-dominated economy.

Exports dropped 8.8 percent in July from a year earlier. The economy grew just 0.4 percent quarter-on-quarter in April-June compared with 0.9 percent in January-March.

The bank forecast a very moderate recovery globally and said the trend of domestic economic growth had slowed "owing to lacklustre exports and domestic demand".

Inflation eased in July year-on-year to 1.5 percent, its lowest rate in more than 12 years, and the bank forecast it would stay low for the time being.

But in a statement it cited potential risk factors, such as rising international grain prices and increases in local utility fees.

Analysts said a back-to-back rate cut could have fuelled bleak international assessments of the prospects for Asia's fourth-largest economy.

The bank "can now wait and see the impact of monetary easing steps (expected) to be taken by the US and Europe before deciding on taking a second rate cut," Kong Dong-Rak, of Taurus Investment and Securities, told Yonhap news agency.