Bank of Japan Warns AI Demand Boom Poses Inflation Risk
The Bank of Japan has expressed concern that the global boom in artificial intelligence-related demand could exert lasting upward pressure on Japan's inflation. In its quarterly outlook report, the BOJ noted that while AI should boost productivity and lower prices in the long term, the short-term effects of an AI-driven investment boom are likely to be inflationary. The report also examined the impact of higher interest rates on Japanese households, noting that they benefit from higher rates due to their substantial deposits exceeding outstanding borrowing.2 sourcesSee all sources