The central bank has warned that the economy may log negative growth in the first quarter. 

The Bank of Korea(BOK) issued the warning Thursday after announcing its decision to freeze its key lending rate at two-point-75 percent. 

In an economic assessment released after the decision, the BOK estimates that the real gross domestic product(GDP) for the January-March period fell below zero-point-two percent, the estimate the bank presented in February. 

The central bank said it cannot rule out the possibility of a small GDP contraction for the first quarter. 

The BOK said that since the February forecast, the nation has encountered a series of unforeseen negative events that weakened growth momentum for the first quarter more than expected. 

The central bank is expected to lower its growth outlook for this year from its earlier forecast of one-point-five percent, in its revised economic outlook set for release May 29.