OREANDA-NEWS. February 24, 2010. Rosstat released inflation (CPI) data for the week ended 15 February. Inflation was estimated at 0.2% (and at 0.4% from the beginning of the month). The corresponding figure for the same period in 2009 was 0.8%. Over the first two weeks of February annual inflation has declined to 7.6% YoY--  down from 8% at the start of this month, reported the press-centre of OTKRITIE Financial Corporation.

View: Since the refinancing rate is still 8.75% (last decreased at YE09 by 25pp), CBR has both sufficient room, and legitimate grounds, for further rate cuts in near future. From our standpoint, CBR could take an even more aggressive approach.

The ruble is strong, perhaps too strong, and thus monetary easing is unlikely to undermine it. It is worth noting that on Wednesday the ruble exchange rate hit the lower boundary of the established policy band. The time to stop providing stimulus to the economy has not yet arrived, hence state authorities need to remain active and vigilant in utilizing it.