Armenia's c.bank holds key refinancing rate at 10.5 pct

Armenia's central bank on Tuesday left its refinancing rate unchanged at 10.5 percent, saying the current level of its main lending rate reflected elevated investment risks. Reuters reports.

The bank added in a statement that the rate decision reflected long-term interest rate trends in emerging markets.

Armenia in February raised its refinancing rate by 1 percentage point, in part to try to protect itself from Russia's financial crisis, which has driven Armenia's dram currency lower.

Armenia, a former Soviet republic of 3.2 million people, is closely tied to Russia through trade and remittances.

Annual inflation in Armenia was at 5.4 percent in February, up from 4.3 percent in January, according to central bank data.

The government forecasts annual inflation in a range of 2.5-5.5 percent in 2015, the same as last year's target.