BIS Warns: Artificial Intelligence Disrupts Macroeconomic Signals, May Increase Risk of Misjudgment in Interest Rate Decisions

TechFlow news, July 28, according to Jin10 Data citing a Bank for International Settlements (BIS) report, the Bank for International Settlements stated that the AI boom is affecting macroeconomic judgments through investment, asset prices, and demand expansion, increasing the risk of "calibration errors" by central banks in interest rate setting.

The report pointed out that in the short term, AI-related infrastructure investment and consumption may push up inflation, while in the long term, it may bring disinflationary effects due to productivity improvements, but central banks currently find it difficult to accurately distinguish between the two. If productivity dividends are overestimated and inflationary pressures underestimated, it may lead to interest rates remaining too low and accumulating inflation risks.

Meanwhile, the Monetary Authority of Singapore warned that global growth is becoming increasingly dependent on the AI and semiconductor industries; if related investment cools down, it could drag down the global economy and impact Asian exports and supply chains.