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BOJ Deputy Governor Weighs AI's Effect on Neutral Interest Rate

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

A Bank of Japan deputy governor said artificial intelligence could influence the neutral rate of interest, the level that neither stimulates nor restrains the economy. The remarks suggest Japanese policymakers are starting to consider how AI-driven productivity and investment shifts might alter the calculus behind monetary policy decisions.

Why now: Central bank officials commenting on AI's macroeconomic effects is new territory and matters for expectations about future interest rate policy.

Bank of Japan

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