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BOJ Deputy Governor Says AI May Shift Neutral Interest Rate

Original: BOJ’s Deputy Chief Flags AI’s Possible Impact on Neutral Rate

A deputy governor of the Bank of Japan said artificial intelligence could influence the economy's neutral interest rate, the level that neither stimulates nor restrains growth. The remarks add to a growing debate among central bankers over how AI-driven productivity gains might alter the balance between inflation and growth, with potential consequences for future monetary policy decisions.

Why now: Central bankers are increasingly weighing how AI could reshape productivity, inflation and the setting of interest rates.

Bank of Japan

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