N.Korea important factor for Seoul rates review

SEOUL, July 5 (Reuters) North Korea's missile launch and the reaction on financial markets will be an important factor for the South Korean central bank's policy meeting this week, a senior Bank of Korea official told Reuters on Wednesday.

Rhee Yeung-kyun, Assistant Governor at the Bank of Korea, did not say whether it would prompt the central bank's monetary policy committee to hold interest rates steady at Friday's meeting, but said the situation did not favour a rise.

''The missile launch and the following reaction on the financial markets will clearly be an important factor for the meeting,'' Rhee said, adding that the impact on Seoul financial markets would be limited.

REUTERS SBA SSC1138