Bank of Japan Deputy Governor Uchida Shinichi (内田 真一) said in a speech that AI is boosting demand and adding upward pressure on the economy and prices, and indicated that it could also affect the conduct of monetary policy going forward.
The Bank of Japan's deputy governor, Uchida Shinichi (内田 真一), said that AI is currently giving a substantial boost to demand and creating upward pressure on the economy and prices. In his speech, he indicated that AI is an urgent issue directly linked to the conduct of monetary policy.
He noted that AI is affecting core variables for monetary policy, including the output gap, financial conditions and various neutral levels. It was explained that this could also affect the Bank of Japan's policy decisions going forward.
The theme of the speech was “AI, big data and monetary policy,” emphasizing the important role AI occupies in discussions on policymaking.