on various occasions in order to prop up growth reaching to extremely low levels. Due to that markets do not anticipate any more changes in rates but this time they foresee interventions by central banks in order to secure their economies from the threat of Deflation!

The start was with Bank of Japan deciding earlier today to hold their benchmark rates at 0.10% coming inline with market projections. The bank had reduced their rates in the prior year when the Credit Crisis intensified, where they have witnessed a dramatic fall in the growth levels, with the fourth quarter GDP contracting to the lowest since 1974!

Along the decision, the bank said they would start buying government bonds with 1.8 trillion yen each month in order to inject some liquidity in their markets. Besides, the statement released yesterday, with a plan indicating they would provide sub-ordinate loans to banks in order to stimulate the lending process that had stalled when banks adopted the hesitation stance.

Japan fears deflation, especially in the past decade they have struggled with this dilemma for a prolonged period. Since the beginning of the Crisis and the weakening demand consumer prices had decelerated rapidly, triggering concerns that prices will be heading under zero barrier.

The Asian indices where bolstered with those news, where the Japanese Nikkei Index added 0.30% to close at 7972.17 levels, along with Hang Seng adding 1.56% reaching to 13081.23 levels at the mid session.

Nevertheless, we are also waiting today for the Bank of England minutes, which would explain why the bank had decided to reduce their benchmark by 50 basis points reaching to 0.50% the lowest since 1694 in the last meeting.

The Bank of England had joined other economies with their concerns that consumer prices will be beading below the zero barriers, where those concerns had pushed all members to vote with reducing their rates to those extreme low levels. However, cutting rates will not be the only instrument that would pick up inflation once again where according to the previous banks projections inflation will undershoot targets heading below 1%.

Moreover, markets are waiting for the Kingdom’s unemployment rates, where according to market projections the levels of unemployment surged in January to 6.5% the highest since 1998 from the previous 6.3%. While the total jobless claim, change had inclined to 84.8 thousand in February from the previous 73.8 thousand pushing the claimant Count Rates up to 4.0%.

After all sectors in the Kingdom stalled, companies where pressured to terminate jobs in order to cut down the levels of expenses, especially as they dealt with eroded profits and the accumulation of stock in their stores.

Moving to the United States, a whole bunch of data are well arranged in our calendar, starting with the Consumer Prices according to projections prices will hold at 0.3% on the month and a flat reading on the year. On the other hand, prices excluding food and energy had eased on the month to 0.1% from the previous 0.2%, but the yearly prices held steady at 1.7% in February.

Inflation had been easing since the world’s leading economy had dipped in a recession in the prior year, with demand easing heavily and crude prices falling from the unprecedented levels seen in July 2008. Inflation became a concern for the Feds where in the previously released minutes they stated that buying bonds needed in order to pick up prices once again. However, the quarrel continues until now the members did not reach a verdict of when they would start implementing this decision.

Based on that we foresee a dissent in today’s minutes where they will only agree on holding steady rates at the current range of 0.0-0.25% but the disagreement would be taking place on the quantitative easing method, with some members wanting immediate actions and other believe that they have to wait and see to what levels inflation will ease.

So dear reader it has the Minutes day let’s just see what would those statements change on the futuristic outlooks…