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BOJ Deputy Governor Says AI Could Shift Neutral Rate

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

A deputy governor of the Bank of Japan has said artificial intelligence may influence the economy's neutral rate of interest, the level that neither stimulates nor restrains growth. The remark matters for markets because the neutral rate anchors expectations about how far the BOJ will move rates, and any AI-driven change in productivity or labour markets could alter that calculus.

Why now: Central bank comments on the neutral rate feed directly into market expectations for Japanese interest rate policy.

Bank of Japan

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