TEXT-S.Korea c.bank says to keep easy monetary policy

SEOUL, Feb 11 (Reuters) - South Korea's central bank on Thursday vowed to keep its easy monetary policy for the time being while noting lingering uncertainties over the economy and European sovereign debt problems.

The Bank of Korea's comments, coming after it held its key interest rate steady at record-low 2.0 percent for a 12th consecutive month, indicated it would maintain the 7-day repurchase agreement rate low for an extended period.

Following are the full text of the Bank of Korea's two statements on the economy and its policy in English, as provided by the central bank:

'The Monetary Policy Committee of the Bank of Korea decided today to maintain the Base Rate at its current level (2.00%) for the intermeeting period.'

'Domestic economic activity has continued on a recovering trend, which is expected to be maintained. Exports and domestic demand have steadily increased and production has advanced briskly. There still, however, remains uncertainty as to the economic growth path due to the risk of government debt crises in some European countries.'

'Consumer price inflation has accelerated its rising pace. It is anticipated as likely to be stable, however, in reflection of recent international raw material price movements. The upward trend of real estate prices has been blunted.'

'Financial market price variables such as exchange rate and stock prices have shown high volatility under the influence of international financial market unrest. Mortgage lending has slowed due to the seasonal factors.'

'Looking ahead, the Committee will maintain the accommodative policy stance for the time being in such a way as to help sustain the trend of recovery in economic activity.'

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'Domestic economic activity has maintained its trend of recovery.'

'During December last year, consumption and facilities and construction investment increased over the preceding month. On the production side, the manufacturing sector continued on its expansionary track month-on-month while services shifted to an upward trend.'

'On a year-on-year basis, the scale of increase in domestic demand and production widened.'

'In the coming months, the Korean economy will likely sustain its positive growth trends. However, there is a considerable degree of uncertainty over the actual growth path, including the possibility of financial market turbulence caused by the fiscal deficit problems in the euro-area.'

'Consumer price inflation is likely to maintain its stable trend for the time being.'

'The current account is expected to continue its underlying surplus, but there is possibility of it registering slight deficits during some months.'

(Reporting by Cheon Jong-woo; Editing by Yoo Choonsik)

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