BOJ Deputy Governor Uchida warns of AI boom risks, market pullback if profits fail to materialise – CNBC TV18

In TrendsStock MarketStocks to WatchGold and SilverHDFC BankBOJ says AI boom may have eased financial conditions, warns of market risksBank of Japan Deputy Governor Shinichi Uchida said the global AI boom may have eased financial conditions by stoking demand and boosting asset prices, but warned of the risk of a market pullback if expected profits fail to materialise.By Reuters October 5, 2026, 12:00:43 PM IST (Published)Bank of Japan Deputy Governor Shinichi Uchida said the global artificial intelligence (AI) boom may have eased financial conditions by stoking demand and boosting asset prices, but warned of the risk of a market pullback if expected profits fail to materialise.”It is a big positive demand shock, which has put upward pressure on the economy and prices,” Uchida said on worldwide AI adoption in the text of a speech on the central bank’s website on Monday, October 5.The technology could also raise productivity and enhance capital stock accumulation, which in turn might affect a country’s natural rate of interest, he said.”Tentatively, it appears the demand side has come first and made financial conditions more accommodative on balance,” Uchida said.”But there is a risk of correction if profits do not follow.”While AI has boosted stock prices…

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