The Bank will continue to closely monitor developments in financial markets, including the bond market, under the flexible operational framework for JGB purchases and the fixed-rate funds-supplying operations, and through discussions with market participants. The Bank expects that both short- and long-term interest rates will move on a stable path on the whole.
B.  Impacts on other financial markets and bank lending  While volatility in the JGB and stock markets increased temporarily, issuance conditions in the CP and corporate bond markets have not changed. Since April, issuance rates on CP have generally remained at low levels, and previously higher rates on the CP of some firms with less favorable business performance have recently declined.