The Bank of Korea(BOK) has raised its key interest rate by a quarter percentage point to point-75 percent amid soaring household debt and property prices. 

The central bank's monetary policy board announced the decision on Thursday, hiking the key rate for the first time in 33 months. It marks the first change in 15 months. 

The BOK slashed its benchmark interest rate by half a percentage point to point-75 percent in March of last year before cutting it by another quarter percentage point two months later. It kept that rate steady until today.  

Lee hinted at a further rate increase at an online news briefing on Thursday, saying that the BOK took a "first step" to ease the accumulation in financial imbalances. 

In making its latest decision, the BOK apparently also took into account that the nation’s vaccination program is picking up speed and that the economy is on a solid recovery path.

The move comes after the central bank signaled its intent to hike rates this year on three occasions since May. In particular, BOK Governor Lee Ju-yeol said after last month's board meeting that it is time to "normalize" monetary policy to cope with financial imbalances.