services, services for amusement and hobbies, and transport. 2. in the right - hand chart, the forecasts presented are the medians of the policy board members'forecasts in the october 2022 outlook for economic activity and prices ( outlook report ). the values of real gdp for fiscal 2022 onward are calculated by multiplying the actual figure for fiscal 2021 by all successive projected growth rates for each year. sources : ministry of economy, trade and industry ; cabinet office ; bank of japan. chart 3 i. recent economic and price developments and the bank's conduct of monetary policy prices the boj's forecasts for the cpi crude oil prices y / y % chg. fy 2022 + 2. 9 % $ / bbl fy 2023 fy 2024 + 1. 6 % + 1. 6 % forward month futures prices - 1 - 2 fy 13 14 15 16 17 18 19 20 21 22 23 24 fy 13 14 15 16 17 18 19 20 21 22 23 24 notes : 1. in the left - hand chart, figures are the cpi for all items less fresh food, excluding the effects of the consumption tax hikes, etc. the forecasts presented are the medians of the policy board members'forecasts in the october 2022 outlook report. 2. in the right - hand chart, figures are futures prices of west texas intermediate ( wti ). figures through november 2022 are monthly averages, while the figure for december 2022 is the average for december 1 - 22. figures for forward month futures prices are those as of december 22, 2022. sources : ministry of internal affairs and communications ; bank of japan ; bloomberg. i. recent economic and price developments and the bank's conduct of monetary policy chart 4 modification of the conduct of yield curve control ( ycc ) impact of increased volatility in overseas markets deterioration in japan's bond market functioning relative relationships among interest rates of bonds with different maturities arbitrage relationships between spot and futures markets possibility of a negative impact on financial conditions yields on japanese government bonds ( jgbs ) are reference rates for corporate bond yields, bank lending rates, and other funding rates. jgb yield curve ( before the december 2022 mpm ) 1. 6 1. 4 1. 2 1. 0 0. 8 0. 6 0. 4 0. 2 0. 0 - 0. 2 % years source : bloomberg. measures decided by the

are mostly unchanged mainly due to the decrease in prices of electric machinery. meanwhile, consumer prices continue to be somewhat weak owing to the slight decrease in the prices of private - sector services and the decline in prices of imported products reflecting the past appreciation of the yen. corporate service prices are still falling slowly. this report was written based on data and information available when the bank of japan monetary policy meeting was held on 11 august 2000. the bank ’ s view on recent economic and financial developments, determined by the policy board at the monetary policy meeting held on 11 august 2000 as the basis of monetary policy decisions. as for the outlook on prices, downward pressure on prices stemming from weak demand is declining significantly while an economic recovery is expected to continue moderately. upward pressure on prices is likely to arise temporarily from the increase in crude oil prices. on the other hand, in addition to the declining trend of machinery prices due to technological innovations, the decline in prices of consumer goods arising from the past appreciation of the yen and the streamlining of distribution channels will exert downward pressure on prices. thus, prices overall are expected to be stable or weak somewhat. in the financial market, the overnight call rate has generally stayed near zero, and financial institutions have been confident about the availability of overnight funds. the amount of funds outstanding in the call money market has decreased slightly. interest rates on term instruments once declined from mid - july, but have recently increased again reflecting the change in expectations that the zero interest rate policy would be terminated. the japan premium remains negligible. yields on long - term government bonds recently increased somewhat, and has been around 1. 75 percent. the yield spread between private bonds ( bank debentures and corporate bonds ) and government bonds remains mostly unchanged as a whole. stock prices fell from mid - july mainly due to the filing of reconstruction proceedings by a major retailer and the decline in u. s. stock prices. in the foreign exchange market, the yen fell moderately towards the end of july and the yen - dollar exchange rate temporarily rose to around 110 yen. the yen is currently being traded in the range of 107 - 109 yen to the u. s. dollar. with regard to corporate finance, private banks have basically retained their cautious lending attitude. however, constraint that had been caused by severe fund - raising conditions and insufficient capital base has eased considerably. given this, major banks continue to be more active in extending loans, while carefully evaluating the credit risks involved. on the other hand, the