() -Argentina’s central bank on Thursday lowered its benchmark interest rate to 32% from 35%, as the South American nation makes headway in its fight to tame triple-digit inflation.

The reduction is the eighth since libertarian President Javier Milei assumed office in December 2023 and continues a series of cuts since a high of 133% in October last year.

The central bank said it based its decision on “the observed consolidation of expectations for a lower inflation rate.”

Milei has presided over tough spending cuts. Inflation has slowed but poverty has climbed sharply and industrial activity has slipped as the economy entered recession.

The rate decision came shortly after the bank published a market expectations survey which showed analysts had lowered forecasts for inflation this year. On average, they now expect a rate of 118.8% at year-end rather than 120% forecast last month.

Rent and utility costs pushed annualized inflation to 193% in October, dipping below 200% for the first time in almost a year, showed data from statistics agency INDEC.

As well as high inflation rates, Argentines are being squeezed by a reduction in social services spending and increased public-sector layoffs.