{
  "id": 12061537,
  "title": "BOJ’s deputy chief flags AI’s possible impact on neutral rate",
  "url": "https://urgent.news/2026/10/05/bojs-deputy-chief-flags-ais-possible-impact-on-neutral-rate",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-05T02:42:00.000Z",
  "source": {
    "name": "Japan Times",
    "slug": "japan-times",
    "url": "https://www.japantimes.co.jp/business/2026/10/05/economy/boj-deputy-chief-ai-neutral-rate/"
  },
  "original_language": "en",
  "account": "Bank of Japan Deputy Governor Shinichi Uchida has raised concerns that artificial intelligence (AI) could influence the neutral rate of interest, according to a recent speech. Uchida identified two primary ways AI may impact interest rates: through a surge in demand that raises inflationary pressure and long-term rates, and by potentially altering the supply side by boosting productivity and capital stock. The neutral rate, which is the rate of interest that neither stimulates nor restrains the economy before accounting for inflation, may initially be increased by AI's widespread adoption.\n\nUchida's remarks come at a time when central banks worldwide are grappling with assessing the rapid development of AI and determining the extent to which the Bank of Japan will raise interest rates. The BOJ has already increased its policy rate to 1.25% in September and is anticipated to raise it again before the end of the year. While AI is driving up stock prices, making financial conditions more favorable, it has also led to increased bond issuance by tech companies, which has, in turn, driven up longer-term yields, creating a more challenging environment.\n\nThe deputy governor also highlighted the potential long-term structural effects of AI, which could render certain forms of human capital obsolete, particularly those related to intellectual labor. Furthermore, AI may exacerbate social inequality, as those with advanced technological skills and adaptability are likely to reap greater benefits than others. The implications of these potential impacts on the neutral rate remain uncertain, and Uchida emphasized the need for thorough examination before drawing definitive conclusions.",
  "summary": "The comments come as economists and market players try to assess high quickly and how far the BOJ will raise interest rates.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}