For borrowers in weaker economies that are undergoing a relative price adjustment, tight credit means that real interest rates are rising while relative prices are falling, thus pushing up the real cost of servicing debt.
The uptrend in corporate profits and business fixed investment is evident in the September Tankan (Short-Term Economic Survey of Enterprises in Japan) as well as in the results of various surveys conducted on small firms. However, the Bank does not consider the current state of business fixed investment indicative of overheating.