SEOUL, Jan. 7 (Xinhua) -- South Korea's central bank said Tuesday it will gradually moderate the degree of its accommodative monetary policy stance, hinting at a possible key interest hike in the year after keeping it at the current level for the time being.

    "While maintaining the underlying stance of monetary easing, the degree of accommodativeness will be progressively moderated, taking into consideration overall financial and economic conditions at home and abroad," the Bank of Korea (BOK) said as it announced the operational direction of monetary policy for 2010.

    Although the key rate will be operated in a way to help sustain the trend of economic recovery for the time being, greater attention will be given to imbalances arising from the continuance for a prolonged period of the monetary accommodative policy, the BOK said, alluding to an adjustment in the interest rate sometime in the year.

    The BOK also mentioned it will take into account the rate of increase in consumer prices and the movement of asset prices as it decides the key rate.

    The bank plans to adjust its liquidity capacity, eyeing liquidity unwinding by revising down quotas under the Aggregate Credit Ceiling.

    In addition, the bank vowed to strive to promote international cooperation as it seeks financial stability, saying it intends to participate actively in discussions on financial stability in the G-20, the Financial Stability Board, the Basel Committee for Bank Supervision, and other international forums.

    The report came a day before the BOK's monthly rate-setting meeting where it decides the benchmark interest rate for the month.

    The BOK is widely expected to keep the rate at a record low of 2 percent for the 11th straight month.

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