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Bank of Korea Governor Lee Ju-yeol said the central bank will maintain an accommodative monetary policy stance next year.
In his New Year message on Tuesday, Lee said as inflationary pressures on the demand side are expected to remain weak, there is a need to maintain an accommodative monetary policy stance.
The central bank had reduced the interest rate twice this year, by 25 basis points each in July and October. The rate currently stands at a record low 1.25 percent.
Data released earlier in the day showed that inflation for the whole year of 2019 reached a record low. Inflation slowed to 0.4 percent in 2019 from 1.5 percent in 2018.
In December, consumer price inflation advanced to 0.7 percent from 0.2 percent in November. Inflation remains well below the central bank's target of 2 percent.
