Moreover, firms continue to reduce their debts as part of their balance-sheet restructuring measures. As a result, credit demand in the private sector has continued to be basically stagnant. In view of this, the underlying tone of private banks’ lending remains sluggish, although the year-onyear rate of decrease moderated somewhat in January and February.
Meanwhile, the amount outstanding of corporate bonds issued continues to be slightly above the previous year’s level. The amount outstanding of CP issued remains at a high level. Recently, the growth rate of money stock (M2 + CDs) is increasing reflecting the inflow from postal savings.