February inflation drop to 4.5% from 5.2% in January, coupled with the relatively stable leu could determine the central bank to cut main rate by another half-percentage point to 6.5% from 7%.

The annual inflation rate fell to 4.49% in February, as the appreciation of the leu cushioned the impact of price growth in food and non-food products.

However, Citibank forecasts an inflation rate of 4.8% at year-end versus NBR’s projection of 3.5%.

The next rate-setting session is scheduled for March 29, 2010.