South Korea's central bank on Friday froze its benchmark interest rate at an all-time low of 1.25 percent.

The Bank of Korea (BOK) refrained from altering the seven-day repurchase rate for seven months in a row since it cut the rate by a quarter percentage point in June last year.

It was in line with market expectations. According to a Korea Financial Investment Association (KFIA) poll of 200 fixed-income experts, 100 percent predicted the rate freeze in the first month of this year.