Armenia’s central bank said on Tuesday it had cut its key refinancing rate to 9.75 percent from 10.25 percent.

Annual inflation in the South Caucasus country was at 1.9 percent in October, down from 3.3 percent in September, 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.