Meanwhile, according to business surveys, financial positions of firms in general are improving slightly, although those of small firms remain severe. The year-on-year growth rate of the monetary base continues to be around 20 percent. The year-onyear growth rate of the money stock rose slightly and is at around 2 percent.
Funding costs for firms continue to be at extremely low levels on the whole. Against the above background, the financial developments are summarized as follows. Money market conditions continue to be extremely easy. Meanwhile, long-term interest rates and stock prices are rising. Growth rates of the money stock and the monetary base relative to economic activity remain high.