SEOUL, South Korea (AP) — Bank of Korea says it has lowered its key interest rate by a quarter of a percentage point to 1.25 percent.

South Korean central bank's surprise move on Thursday is the first rate cut since June last year. The bank lowered the key interest rate twice in 2015 to aid the slowing economic recovery.

Most market analysts expected that the bank would lower interest rates later in the year.

South Korea has seen weak exports amid low crude oil prices that hit its shipyards and other its key export sectors. An export drop slowed in May but growth momentum has remained sluggish.

Asia's fourth-largest economy eked out a mere 0.5 percent of growth during the first quarter from the previous three months, the slowest pace since spring last year.