However, they are expected to start increasing on a year-on-year basis at some point in late 2005 or early 2006, as the effects of temporary factors, such as the decline in rice prices and the reduction in electricity and telephone charges, fall off. In the capital markets, stock prices have been firm on the whole and long-term interest rates have been stable.
The environment for corporate finance is becoming more accommodative on the whole. That is to say, in a situation where the lending attitude of financial institutions is becoming more active, the rate of decline in lending by private banks has been diminishing at a moderate pace. Moreover, the environment in the capital markets for firms raising funds through CP and corporate bonds is favorable.