BOJ says global AI demand could have sticky inflationary effect

The Bank of Japan warned that surging global demand for artificial intelligence could create persistent inflationary pressures, a concern weighing on central bank policy decisions worldwide as officials balance inflation risks against economic growth. The BOJ's assessment comes as markets monitor upcoming rate decisions across major economies, with the yen, oil prices, and bond yields reflecting uncertainty over how central banks will respond to inflation dynamics tied to AI investment and energy costs. Sticky inflation concerns are complicating monetary policy outlooks in Japan, the eurozone, and the U.S., even as some sectors show resilience in employment and asset prices.