17:51 30 September 2026
BOE: shares of AI companies may fall sharply affecting global economic growth
The Bank of England warned that AI-related assets remain vulnerable to a sharper correction than the market decline in July. A sell-off could spread beyond technology stocks, affecting global growth and government bond markets, especially if investors lose confidence in AI’s expected productivity gains. The bank also cited renewed Middle East conflict, risks in private credit and high hedge-fund leverage in UK government bonds.
Governor Andrew Bailey said AI systems should be carefully tested to manage risks such as cyberattacks before formal regulation is introduced. UK bond yields have risen amid energy-driven inflation concerns, tightening financing conditions. Markets are pricing in as many as five Bank of England rate increases by the end of 2027.
(pb.pl)
