Short-term interest rates began to move downwards from April 2003. Having increased by about 400 basis points in conjunction with the repo rate during the first nine months of 2002 and then stabilising at this higher level for the next six months, short-term rates declined by approximately 200 basis points up to the end of July 2003. 5.
Private-sector companies made increased use of the primary bond market to finance activities. With subdued share prices and the cost of funding in the money market higher than in the bond market, several companies issued bonds.