South Korea's central bank on Thursday froze its policy rate at a record-low of 1.25 percent, refraining from altering the rate for 11 straight months.

Bank of Korea (BOK) Governor Lee Ju-yeol and six other policy board members decided to keep the seven-day repurchase rate on hold at an all-time low of 1.25 percent. The bank cut the rate to the current level in June last year.

It was in line with market expectations. According to a Korea Financial Investment Association survey of 200 fixed-income experts, 100 percent predicted the rate freeze.