Under these circumstances, the amount outstanding of lending by private banks has been increasing moderately, and the amount outstanding of CP and corporate bonds issued has been above the previous year's level. II.
Conduct of monetary policy  Regarding the conduct of monetary policy, the Bank's basic thinking has been that (1) given the extremely accommodative financial conditions, the level of interest rates is to be raised if Japan's economy is to follow a path of sustainable growth under price stability, and (2) the  BIS Review 135/2007  1  pace of increase in interest rates should be determined in accordance with improvements in the economic and price situation without any predetermined view.