Tajikistan’s central bank cut its benchmark refinancing rate by 60 basis points to 5.5 percent, its second rate cut this year, reflecting lower inflationary pressures.

The National Bank of Tajikistan, which has now cut rates by 100 basis points this year following a total cut of 330 basis points in 2012, also said the change in policy was aimed at lowering the average interest rate on loans in the banking system.

Inflation in the central Asian country of Tajikistan fell to 4.6 percent in July from 6.10 percent in June and May.

Tajikistan’s Gross Domestic Product expanded by an annual 7.3 percent in the first quarter of this year, slightly down from 7.5 percent in the previous quarter. The government has forecast growth this year of 7.4 percent following 7.5 percent growth in 2012.