Bank of Japan Revises Growth Risks to Balanced Amid Resilient AI Demand

BoJ adjusts risk assessment to balanced, citing AI demand cushioning geopolitical drag. Inflation concerns persist, fueling expectations for further rate hikes before October.

Woofun AI reports that the Bank of Japan revised its economic growth risk assessment to balanced, reversing a previous downside skew. The central bank attributed this shift to resilient global artificial intelligence demand offsetting geopolitical headwinds from the Middle East conflict. Authorities maintain warnings that core inflation may exceed the 2% target, signaling continued borrowing cost increases based on economic trends. Market participants are elevating expectations for an interest rate hike prior to October, with Governor Haruhiko Kuroda’s press conference anticipated to provide further clarity.