South Korea's central bank said Wednesday that it will maintain an accommodative monetary policy next year due to modest growth and low inflation.

The Bank of Korea (BOK) said in its 2015 report for monetary policy direction that it will keep its monetary policy accommodative amid the expected modest growth of the domestic economy and low headline inflation for long.

The bank said it will pay attention to possibilities for further fall in inflation expectations caused by the prolonged low level of consumer price inflation as well as downside risks to the economy causing a real economic slowdown.

The BOK cut its benchmark interest rate in August and October to a record low of 2 percent. Expectations remain high for the BOK's additional rate cuts.

Inflation expectation among consumers over the next 12 months was an annual rate of 2.6 percent in November, marking the lowest since the BOK began compiling the data in February 2002.

The headline inflation dipped from 1.2 percent in October to 1 percent in November, staying far below the BOK's inflation target band of 2.5-3.5 percent in the past three years.

The low inflation expectations sparked concerns that consumers may delay spending on hopes for lower prices of goods and services. It could lead to the prolonged deflation as seen in Japan and economic slowdown.