On the other hand, in addition to the declining trend of machinery prices due to technological innovations, the decline in prices of consumer goods arising from the past appreciation of the yen and the streamlining of distribution channels will exert downward pressure on prices. Thus, prices overall are expected to be stable or weak somewhat.
In the financial market, the overnight call rate rose in response to the decision at the Monetary Policy Meeting held on 11 August to change the guideline for money market operations,3 and is generally moving around 0.25%. The amount of funds outstanding in the call money market has increased.