[Bank of Japan Deputy Governor Warns AI May Impact Neutral Interest Rates] Jin10 News, October 5 – Bank of Japan Deputy Governor Shinichi Uchida stated that artificial intelligence is driving a surge in demand, pushing inflationary pressures and long-term interest rates, which could potentially affect neutral interest rates. Firstly, this represents a significant positive demand shock, exerting upward pressure on the economy and prices. Secondly, it may impact the supply side, potentially generating positive effects by improving productivity and enhancing capital stock, which could, in turn, influence r-star (neutral interest rate). The Bank of Japan Deputy Governor's remarks suggest that the neutral interest rates of global central banks may initially be forced to rise due to the proliferation of artificial intelligence, though the long-term effects remain uncertain. Shinichi Uchida pointed out that while the growing demand for artificial intelligence has driven up stock prices and loosened financial conditions, the large-scale bond issuance by tech companies has pushed up long-term yields, tightening conditions. Moreover, the long-term structural impacts could steer policy in different directions. Artificial intelligence may rapidly render certain forms of human capital obsolete, particularly skills designed for intellectual labor. It could also influence social inequality, as individuals with more technical skills and flexibility may reap greater benefits than others.