BUENOS AIRES, June 16 (Xinhua) -- Argentina's Central Bank on Thursday raised the benchmark interest rate by three percentage points, from 49 percent to 52 percent.

       The move marked the sixth time this year the bank has raised the rate amid high inflation of an accumulated 29.3 percent in the first five months, according to official data.

       According to the bank's statement, inflation in the South American country has begun to "slow down" compared to the record high it reached in March, but the increase in the interest rate continues as a way to stimulate savings in local currency.

       "In an economy like Argentina's, with a relatively small credit channel, the rate hike serves mainly to encourage savings in pesos," the bank said.

       "Their anti-inflationary action then largely involves contributing to exchange and financial stability, and must be complemented with other economic policy instruments to reduce inflationary inertia," it added.