Speech by Ms Junko Koeda, Member of the Policy Board of the Bank of Japan, at a meeting with local leaders, Kumamoto, 15 October 2026.
Please allow me first to offer my sincere condolences to all those affected by the 2026 Kumamoto Earthquake. I would also like to express my deepest respect to all those who have dedicated themselves to the recovery and reconstruction efforts.
I. Current Situation and Outlook for Economic Activity and Prices
Three Perspectives
Today, I would like to begin by noting three perspectives that I have recently had in mind when assessing economic activity and prices, and then I will explain the current situation and outlook for economic activity and prices.
The first perspective centers on AI. Over the past six months, or even the past few months, AI progress has been remarkable. For Japan, AI could stimulate related demand in the short run, including that from overseas, and put upward pressure on prices. In the longer run, however, it could have a multifaceted impact on economic activity and prices, and I would like to elaborate on this later.
The views expressed in this speech are those of the speaker and do not necessarily reflect those of the BIS.
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Authors
Junko Koeda