Russia's ruble banknotes are seen in this file photo taken on April 28, 2017. (Xinhua/Shi Hao)

MOSCOW, Dec. 14 (Xinhua) -- The Russian Central Bank on Friday raised its key lending rate by 0.25 percentage points to 7.75 percent on "elevated inflation risks," the bank said in a statement.

This has been the second hike of the rate this year. The bank raised the stake by 0.25 percentage points to 7.5 percent in September for the first time since 2014 when a currency crisis broke out following Western sanctions.

"Uncertainty persists over future external conditions, as well as over the reaction of prices and inflation expectations to the upcoming VAT rate increase," the statement said.

According to the bank, the increase in the key rate will help prevent inflation from anchoring at a level significantly exceeding the Bank of Russia's target.

The bank expects the inflation at the end of the year to be 3.9-4.2 percent, which is close to its target level of 4 percent, the statement said.

The bank will consider the necessity of further increases in the key rate next year, it added.