The central bank has kept its key interest rate steady amid the weak currency and recent changes in U.S. trade policy that have greatly amplified uncertainty. 

After its Monetary Policy Board held a rate-setting meeting Thursday, the Bank of Korea(BOK) announced that it will freeze its key lending rate at two-point-75 percent.

The decision follows a quarter-percentage-point rate cut in February due to concerns about an economic recession, after cuts in October and November last year.

The BOK said downside risks have increased due to the economic downturn in the first quarter and worsening trade conditions.

The central bank also stressed the need to closely monitor trends for household loans and watch for increased volatility in the foreign exchange market.