CBR may cut refinancing rate by 0.25-0.5pps.

CBR may cut refinancing rate by 0.25-0.5pps. CBR may cut the refinancing rate by 0.25-0.5pps, CBR Deputy Chairman Alexei Ulyukayev said during a meeting with State Duma’s committee on economic policy. He said the reduction is possible if CPI inflation will not exceed 8.5% y/y in 2006. Another required condition is that real RUR appreciation will not exceed 9% in 2006. Ulyukayev said that according to CBR’s estimations, inflation may reach more than 8.5% however would not exceed 9%. Presently, the refinancing rate is set at 11%. The last reduction was made in Jun 2006, when the rate was cut by 0.5pps.