The Bank of Korea(BOK) has maintained its benchmark interest rate at three-point-five percent to deal with the economic slowdown.

In the central bank’s rate-setting monetary policy meeting on Thursday, the BOK decided to freeze the key rate, ending its rate-hike trend that continued for 17 months since August of 2021.

During the period, the central bank raised key rates ten times, including seven consecutive hikes, to contain soaring prices, increasing a total of three percentage points.

Thursday's freeze came amid growing concerns over an economic slump with negative economic indicators.

The economy contracted in the fourth quarter of last year for the first time in two and a half years, with the gross domestic product shrinking zero-point-four percent from the previous quarter.

The contraction is feared to continue into the first quarter of this year on the back of sluggish exports.

Consumer sentiment also dropped zero-point-five points on-month to 90-point-two in February, amid slow exports and rising prices.