19:36 29 July 2026
AI Challenges Central Banks
The rapid expansion of artificial intelligence is creating new challenges for central banks as they attempt to gauge inflation and set interest rates, according to the Bank for International Settlements (BIS). A new BIS report says heavy investment in AI—including spending on data centers, semiconductors and digital infrastructure—is boosting economic activity and supporting financial markets in the short term, potentially adding to inflationary pressures. At the same time, AI is expected to improve productivity and expand economic capacity over the longer term, helping to reduce inflation.
This combination makes it increasingly difficult for policymakers to determine whether strong growth reflects temporary investment or lasting improvements in productivity. The BIS also warns that AI's benefits will vary across countries and industries, while rising valuations of AI-related companies could fuel speculative bubbles and distort economic signals. As AI reshapes the global economy, central banks face growing risks of misjudging economic conditions and implementing inappropriate monetary policy.
Source: pb.pl
