Including such indirect effects, the Bank believes that the low interest rates have in fact been firmly supporting the recovery of economic activity in the corporate sector. I would now like to go on to another often raised question about whether low interest rates are delaying the structural adjustment.
It is true that there may be firms that are managing to survive despite a deteriorating business performance, owing to lower interest rates alleviating the burden of paying interest. My view, however, is that structural adjustment of the economy is achieved not just through natural selection of firms, where those with extremely poor business performance are weeded out.