private demand. with regard to prices, import prices are rising due to the increase in international commodity prices such as crude oil prices, along with the recent depreciation of the yen. domestic wholesale prices, notwithstanding the fall in prices of electric machinery, are flat mainly due to the rise in prices of petroleum and chemical products reflecting an increase in crude oil prices. meanwhile, consumer prices are somewhat weak due to a decline in prices of imported products reflecting the past this report was written based on data and information available when the bank of japan monetary policy meeting was held on 8 march 2000. the bank ’ s view on recent economic and financial developments, determined by the policy board at the monetary policy meeting held on 8 march as the basis of monetary policy decisions. appreciation of the yen. corporate service prices are still falling slowly. as for the outlook, upward pressure on prices is likely to arise from the gradual improvement in domestic supply - demand balance, as shown in the decline in inventories, and from the rise in crude oil prices. on the other hand, downward pressure is expected from the long - term declining trend of machinery prices due to technological innovations and from the fall in prices of imported products reflecting the past appreciation of the yen. on balance, overall prices are likely to remain unchanged for the time being. however, attention should still be paid to the downward pressure on prices stemming from weak demand, as clear signs of a self - sustained recovery in private demand have not yet been observed and wages continue to fall. in the financial market, the overnight call rate has generally stayed near zero, except for a temporary rise reflecting concerns about the possible computer problems related to the leap year, and financial institutions have been confident about the availability of overnight funds. the amount outstanding of funds in the call money market increased slightly in late february, and decreased thereafter. interest rates on term instruments have generally been stable at an extremely low level. the japan premium remains negligible. yields on long - term government bonds were generally above 1. 8 % in february, but declined somewhat from the beginning of march, and are recently ranging between 1. 7 % and 1. 8 %. the yield spread between private bonds ( bank debentures and corporate bonds ) and government bonds continues narrowing, primarily that between private bonds with relatively low credit ratings and government bonds. stock prices have been firm on the whole, and are currently moving around 20, 000 yen. in the foreign exchange market, the yen weakened against the us dollar for most

united states, which are especially important to cyclical economic activity, mexico ’ s potential long - term economic growth has substantial upside if the nation continues to fortify its fundamentals, which include healthy fiscal finances, low inflation, and a liquid and well - capitalized banking system. its upside potential will also be greater if it promotes pending structural reforms fostering productivity growth and investment. concluding remarks the increasing economic integration of mexico with the united states during the last three decades has benefited both countries significantly. advantages to mexico include greater product specialization and efficiency, and for both nations, a wider variety of goods and services at lower prices. being next to the largest and most diversified economy in the world is a strong advantage for mexico which should not be underestimated. recently, international financial instability has affected mexico mainly through substantial currency depreciation, similar to that experienced by other emerging market currencies, and, to a lesser extent, through slightly higher interest rates. meanwhile, the mexican economy has continued a recovery process which has included more moderate growth in the industrial sector, mainly reflecting slower exports to the united states. mexico ’ s economic outlook remains dependent on the strength of the u. s. economy, but long - term upside potential can be realized if mexico ’ s fundamentals are strengthened, and pending structural reforms approved. finally, monetary policy will continue to be consistent with preserving the convergence of inflation to the permanent 3 percent target. bis central bankers ’ speeches