Armenia’s central bank raised its key refinancing rate to 9.25 percent from 8.0 percent to curb rising inflation, which went well beyond the target range, and amid economic problems in the country’s main trading partner Russia.

The Lombard repo rate was raised to 10.75 percent from 9.50 percent and the deposit rate – to 7.75 percent from 6.50 percent.

Consumer prices in Armenia were up 6.5 percent year-on-year in February after 7.1 percent annual inflation in January. Inflation in February was 0.1 percent compared to a month earlier when the consumer price index rose by 1.6 percent. In January-February, consumer prices rose by 6.8 percent year-on-year.

Armenia’s government projects annual inflation in a range of 2.5-5.5 percent in 2022. The central bank expects that inflation will get closer to the target at the end of the second quarter.