Balance-sheet adjustment and adjustment of industrial structure are still in process. This being the case, we at the Bank do not believe that the self-sustained economic recovery has gained sufficient strength. This is precisely why we have maintained the official discount rate at a low level since September 1995.
In the course of the gradual economic recovery over the past two years, however, the level of economic activity has doubtlessly been rising steadily, gradually adding to the strength of the self-sustained economic recovery. Specifically, there has been some progress in balance-sheet adjustment and industrial restructuring as corporate profits continued to increase.