Investment Banker (Business Administration, BBA) - Wilfrid Laurier University

Editor at Large and co-author of VC Insider Lisbon , Portugal - 12 November 2025; Jesse Zhang, Co-founder & CEO, Decagon AI on Centre Stage during day two of Web Summit 2025 at the MEO Arena in Lisbon, Portugal. (Photo By Shauna Clinton/Sportsfile for Web Summit via Getty Images)

Bank of Japan deputy governor Shinichi Uchida said AI is now a key topic of discussion for policymakers. The artificial intelligence boom may be changing more than just stock prices. AI could alter where interest rates ultimately settle by boosting demand, lifting productivity, and increasing capital investment, Bank of Japan Deputy Governor Shinichi Uchida said Monday. "First, it is a big positive demand shock, which has put upward pressure on the economy and prices. Second, it could affect the supply side, perhaps positively by raising productivity and enhancing capital stock accumulations," Uchida said in a speech in Tokyo. He added that the developments could affect r-star, or the neutral rate of interest, which is the level that neither stimulates nor restrains the economy. If AI raises that underlying rate, it could mean central banks ultimately need to keep policy rates higher than investors previously expected to keep inflation in check without unnecessarily slowing economic activity.