It is marked in the USA FOMC last meeting minute that the American economy state has aggravated, activity in international relations has especially fallen. Forecast regarding the USA economy was reviewed towards falling as well, growth of the largest economy in the world is expected no earlier than 2010. In addition, the danger of low inflation rate and essential risks of the economy falling were pointed out. The Committee members said that significant worsening of economic outlooks has caused the need for long-term assets purchase, however, some meeting participants has different opinions about the amounts of the purchase mentioned.

Today, the Japanese party in power has approved a new package of measures to encourage the country economy in conditions of the global financial crisis. The plan provides allocation of about 154 billion USD directly for emergency support of the economy and companies suffered. At the same time, taking the indirect measures, such as provision of guarantees for the companies` debt obligations and tax remissions into account, total cost of the anti-crisis financial package will amount to almost 570 billion USD. BOJ Governor, while speaking before the Committee of the Upper Chamber of the Parliament, said that he did not exclude any variant of the further monetary policy development, including returning to zero rates. BOJ Governor also admitted that the Japanese economy state had aggravated in comparison with middle January, when BOJ performed preliminary assessment of inflation and other economic indexes.  

Meanwhile, Fitch Agency has lowered long-term ratings of Estonia, Latvia, Lithuania and sovereign rating of Ireland.

Today important reports for Europe and the USA will be released, such as BOE rate decision at 11:00 GMT and the American trading balance for February at 12:30 GMT and the British foreign trade balance at 8:30 GMT. Tomorrow there will be extremely few events owing to Good Friday celebration, many market participants are out of the market even today, and in the conditions of “thin trades” unexpected price movements are quite likely to occur on the news release.

Have a nice day! Alex Sabodin.                                                       

Pro Finance Group Inc.