The Central Bank of Armenia (CBA) has cut its key refinancing rate to 8.50 percent from 8.75 percent.

Annual deflation in Armenia was at 0.4 percent in January, down from 0.1 percent in December, according to CBA data. Monthly inflation in January was 2.2 percent, up from 1.7 percent inflation in December.

The government forecasts annual inflation within a range of 2.5-5.5 percent in 2016, the same as last year’s target.