Meanwhile, the amount outstanding of funds in the call money market has decreased, partly because some institutional investors have shifted a part of their funds from the market to ordinary deposits. The shrinkage of the market has not led to any difficulty in funds settlement. However, close attention should be paid to developments in the flow of funds as unexpected changes may occur.
Long-term interest rates have, amid nervous market sentiment, declined following the fall in short-term rates. Stock prices have turned to be firm against the background of the recent depreciation of the yen and the rise in U.S. stock prices. With regard to corporate finance, credit demand for economic activities such as fixed investment remains weak.