In the corporate bonds and CP markets, the issuing environment for firms with low credit ratings is still severe, but the environment for firms with high credit ratings is accommodative. Credit demand in the private sector continues to follow a downtrend mainly because firms are decreasing their business fixed investment while continuously reducing their debts.
Amid these developments, private banks’ lending continues to decline by about 2-3 percent on a yearon-year basis. The year-on-year growth rates of the amount outstanding of corporate bonds and CP issued are on a downtrend. The monetary base increased substantially —by around 20-30 percent— from the previous year’s level, although the growth rate slowed slightly.