Buenos Aires: Argentina's central bank raised its key interest rate by six percentage points to 97 percent in a bid to tackle soaring inflation that has reached a 30-year high.

Central banks around the world are struggling to control inflation, but it is a particular problem in Argentina, where the annual inflation rate soared 100 percent last month, CNN reported.

This is the highest level since the early 1990s, and currently Venezuela and Zimbabwe are the only countries with higher inflation than Argentina, according to IMF data.

The central bank said in a statement on Monday that it hoped the interest rate hike would encourage investment in the country's currency.

Rising inflation has led to large investment outflows in the Argentine peso, causing its value to depreciate by 23 percent against the US dollar this year.

Faced with presidential elections scheduled for October, Economy Minister Sergio Massa is focused on avoiding further devaluation and containing inflation.

Seen as a potential third-party candidate since incumbent President Alberto Fernandez announced last month that he would not seek re-election, Massa's success is likely tied to the outcome of his anti-inflation plan.

But analysts said the new interest rate hike is unlikely to bring about any real change in Argentine markets.

“There is a feeling that the government is completely lost in the face of inflation,” said Miguel Kiguel, a financial advisor and former deputy director of the Central Bank of Argentina.

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