South Korea's central bank cut benchmark interest rates for a second straight meeting on Thursday in a surprise move as the economy stalled and inflation slowed more than policymakers predicted.

South Korea's central bank has lowered its key policy rate for the second straight month and says the country's economy will grow at a slower pace than it initially anticipated.

South Korea's central bank on Thursday cut its benchmark interest rate by 25 basis points to 3% in a surprise move.Economists polled by Reuters had estimated the bank to hold rates at 3.25%.This is the second straight cut as the Bank of Korea lowered rates by 25 basis points in its last meeting in October as well.