Shinichi Uchida, Deputy Governor of the Bank of Japan, has stated that the economic impact of artificial intelligence could extend beyond the technology sector. According to Uchida, investment in AI infrastructure and data centers is creating a strong positive demand shock and can put upward pressure on prices. If the rise in demand becomes entrenched, central banks could need higher interest rates in their fight against inflation.
By boosting productivity and capital investment, artificial intelligence could raise the neutral interest rate known as “r-star.” However, if companies fail to achieve the expected profits, AI optimism could reverse, affecting stock and bond markets as well as overall financial conditions.
Background
The Bank is no new name in the FikirPilot archive: we have published 4 stories featuring this name in the last 90 days, the most recent dated October 2, 2026.