particularly for the u. s. economy, is also accompanied by various uncertain factors. amid the persisting fragility and uncertainty of the economy, it should continue to be borne in mind that unstable movements in the foreign exchange and financial markets at home and abroad would easily exert a negative influence on the economy. on the price front, import prices become almost unchanged because the continued upward pressure from the rise in crude oil prices around early spring is offset by the recent appreciation of the yen. domestic wholesale prices are also almost flat since the decline in machinery prices and the reduction in electricity charges are offset by the effects of the increase in import prices in the past and of the progress in inventory adjustment. however, consumer prices and corporate service prices continue to decline. as for the conditions surrounding price developments, the balance between supply and demand is expected to still keep exerting downward pressure on prices amid persistently weak domestic demand for a while, although the progress in inventory adjustment will support prices to some degree. moreover, factors such as the ongoing technological innovations in machinery, deregulation, and the this report is based on data and information available at the time of the bank of japan monetary policy meeting held on june 11 and 12, 2002. the bank ’ s view of recent economic and financial developments, determined by the policy board at the monetary policy meeting held on june 11 and 12 as the basis for monetary policy decisions. streamlining of distribution channels will continue to restrain prices. under these circumstances, as import prices are likely to turn down, domestic wholesale prices, which are sensitive to import prices, will edge down after remaining flat a little further. on the other hand, consumer prices are expected to stay on a declining trend for the time being at the current gradual pace. this is partly because while the slower growth in imports of consumer goods is expected to alleviate the downward pressure on prices to some extent, the faster pace of decline in wages may possibly reinforce the ongoing decline in prices, especially for services prices. as for the financial market, in the short - term money markets, the outstanding balance of the current accounts at the bank of japan is recently moving around 15 trillion yen as the bank continues to provide ample liquidity to the money market. in these circumstances, the overnight call rate continues to move around zero percent. moreover, interest rates on term instruments remain steady. yields on long - term government bonds are mainly moving in the range of 1. 3 - 1. 4 percent recently. yield spreads between private

than prior to the 2008 financial crisis. among other factors, mortgage debt repayments have reduced the average loan - to - value ratio. as a result, households are generally less likely to go into negative equity ( " under water " ) if house prices fall. ( financial stability report, – autumn 2022 ). in addition, many households have taken advantage of the low interest rate environment to lock in a long fixed - interest period, meaning most of them will be able to weather a potential negative equity situation for just as long. the dutch public debt - to - gdp ratio is developing favourably, but it is important to restore fiscal discipline. as mentioned earlier, large - scale and generic fiscal policy can lead to higher inflation, higher interest rates and higher public debt. high public debt in some southern european member states poses a risk, although even here the impact of rising interest rates on public finances is cushioned by the fact that public debt is financed on a long - term basis. if economic growth weakens, doubts about debt sustainability in countries with high debt - to - gdp ratios could resurface.