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Bank of Japan warns AI boom may hide market risks

Original: BOJ says AI boom may have eased financial conditions, warns of market risks

The Bank of Japan said the surge of investment in artificial intelligence may have eased financial conditions in Japan and globally, but cautioned that markets could be vulnerable if enthusiasm around AI-related stocks reverses. Policymakers flagged elevated asset prices and urged close monitoring of volatility, keeping the central bank cautious on the pace of any further policy tightening.

Why now: Investors are weighing whether AI-driven market gains are sustainable and what that means for central bank policy.

Bank of Japan

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