AI slump not seen affecting Bank of Japan’s rate-rise plan

The Bank of Japan argues that AI is only one factor contributing to inflation in Japan. | Reuters

Nov 12, 2026

The Bank of Japan is expected to maintain its pace of raising rates, roughly one every three months, according to some analysts, even as uncertainty grows over artificial intelligence and data center investment.

“I believe the impact on the BOJ’s rate hike pace will not be significant,” said Soichiro Tateishi, an economist at the Japan Research Institute.

Following a resounding victory in the U.S. midterm elections by the Democratic Party earlier this month, concerns have grown over the possible slowdown of data center buildouts, as many candidates pledged stricter regulations for these projects.

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