##3 and has been carrying out assessments of japan's economic developments and monetary policy over the past 25 years. in the late 1990s, japan's economy fell into deflation, and monetary accommodation did not produce sufficient stimulative effects even when short - term interest rates were lowered to 0 percent. since then, the bank has continued with unconventional monetary policy, which goes beyond the scope of conventional policy. the unconventional policy has had not only positive effects but also side effects, and the bank will assess the policy measures objectively and reasonably in its review. a crucial point in conducting the review is not to assess the monetary policy measures alone but to evaluate them in the context of interactions with japan's economic conditions at each point in time. in this sense, today's meeting is a valuable opportunity to hear your candid opinions on japan's economic activity and prices and the bank's conduct of monetary policy. iv. recent and future economic activity in chiba prefecture lastly, i would like to talk about the economy of chiba prefecture. the prefecture has been pursuing a range of forward - looking, strategic actions to address economic and social changes, such as the shift to carbon neutrality, as well as digitalization and population decline. for example, chiba prefecture has set guidelines for promoting carbon neutrality, while firms such as those in steel and chemical industries gathered in the keiyo industrial zone have been vigorously pursuing technological development aimed at lowering carbon dioxide ( co2 ) emissions and capturing co2. furthermore, efforts are underway to introduce offshore wind power generation off the coasts of choshi, isumi, and kujukuri. although chiba prefecture's population had continued to increase for many years, it turned to a decline after peaking in 2020. to address this situation, the prefecture is currently promoting various initiatives under a comprehensive strategy for regional revitalization, which include boosting productivity through the use of artificial intelligence ( ai ) and other cutting - edge technologies, supporting childcare, and enhancing the framework for providing health care. the hope is that the prefecture will take a leading role in addressing a major issue facing japan ; namely, the establishment of a sustainable regional community. in recent years, chiba prefecture has been struck by a string of natural disasters, such as typhoons and earthquakes. in particular, typhoons no. 15 and no. 19 in 2019 wreaked massive damage on the region. nevertheless, i still recall vividly how economic activity in the prefecture was quickly restored thanks to the efforts

, in the short - term money markets, the overnight call rate continues to hover at very close to zero percent. moreover, longer - term interest rates such as tb and fb rates continue to be at low levels as a whole, although the markets remain nervous reflecting weak bank stock prices. yields on long - term government bonds continue to move at around 1. 0 percent. yield spreads between private bonds ( bank bonds and corporate bonds ) and government bonds remain virtually unchanged. stock prices turned up in late - november, but weakened again in december in line with a decline in u. s. and european stock prices. the nikkei 225 stock average is recently moving at around 8, 500 yen. in the foreign exchange market, the yen declined until the beginning of december reflecting the improvement in some u. s. economic indicators. thereafter, the yen rebounded as the u. s. dollar weakened again on the whole due mainly to geopolitical factors. the yen is currently traded in the range of 120 - 122 yen to the u. s. dollar. with regard to corporate finance, private banks are becoming more cautious in extending loans to firms with high credit risks while they continue to be more active in extending loans to blue - chip companies. the lending attitudes of financial institutions as perceived by firms have become slightly more severe. in the corporate bond and cp markets, the issuing environment for firms with high credit ratings is accommodative, but the environment for firms with low credit ratings is severe. credit demand in the private sector continues to follow a downtrend mainly because firms ’ business fixed investment remains sluggish 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 growth rate of the amount outstanding of corporate bonds and cp issued is on a declining trend. meanwhile, according to business surveys, the financial position of firms, particularly that of small firms, remains severe. the monetary base exhibits a high year - on - year growth rate of around 20 percent. the year - on - year growth rate of the money stock remains around 3. 0 - 3. 5 percent. funding costs for firms continue to be at extremely low levels on the whole. against the above background, the financial developments are summarized as follows. money market conditions as a whole continues to be extremely easy. long - term interest rates are low. the money stock and the monetary base maintain high growth rates relative to