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The Guardian - UK
The Guardian - UK
Business
Kalyeena Makortoff Banking correspondent

Bank of England warns of growing risk that AI bubble could burst

The Bank of England on Threadneedle Street in the City of London
The Bank of England says ‘equity market valuations appear stretched, particularly for technology companies focused on artificial intelligence’. Photograph: Linda Nylind/The Guardian

The Bank of England has warned there is a growing risk of a “sudden correction” in global markets as it raised concerns about soaring valuations of leading AI tech companies.

Policymakers said there were also threats of a “sharp repricing of US dollar assets” if the Federal Reserve lost credibility in the eyes of global investors. It comes as Donald Trump’s continues to attack the US central bank and threaten its independence.

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