A deflationary spiral is a vicious circle in which price declines lead to deterioration in economic conditions, and this in turn causes further price declines. As I mentioned earlier, the Bank's baseline scenario projects that the rate of decline in prices will accelerate temporarily, but will moderate from the latter half of fiscal 2009 against the backdrop of a recovery of economic activity.
The Bank therefore thinks it unlikely at present that prices will continue to decline and thereby lead Japan's economy into a deflationary spiral. D.  Developments in corporate financing  Next, I would like to talk about recent developments in corporate financing. The Bank's current assessment of financial conditions is that, while remaining generally tight, they have continued to show signs of improvement.