South Korea's central bank has lowered the nation’s key interest rate by 25 basis points in a surprise move.

In its monthly monetary policy meeting on Thursday, the Bank of Korea decided to cut the rate to a record low one-point-25 percent.

It marks the first rate cut in a year after the BOK lowered the rate to one-point-five percent last June.

The BOK was widely expected to stay pat, but a weak economy and anticipations for a delayed U.S. rate hike appear to have pushed the bank to slash rate.