DUSHANBE (Reuters) – Tajikistan’s central bank cut its refinancing rate on Monday to 9.0 from 9.8%, its second reduction in just over two months, after inflation eased last year.

The National Bank of Tajikistan did not give a reason for the cut. When it last cut the rate on Dec. 20, to 9.8% from 10.0%, it said that it wanted to lower average interest rates on loans and keep a stable level of money supply in circulation. The latest reduction returns the key rate to a level last seen in October 2011. The central bank raised it to 10.0% from 9.0% on Oct. 20.

However, annual interest on loans issued by Tajik commercial banks averaged 21.5% in December. The real interest rate in Tajikistan was last reported at 7.57% in 2010, according to a World Bank report released in 2011(13.87% in 2009, -3.57% in 2008). Real interest rate is the lending interest rate adjusted for inflation as measured by the GDP deflator.

Inflation in Tajikistan slowed to 9.3% last year from 9.8% in the preceding 12 months.