The artificial intelligence boom could make it increasingly difficult for central banks to assess the true state of the economy and determine the appropriate path for interest rates, as the technology is simultaneously boosting demand while expanding future supply potential, the Bank for International Settlements (BIS) said, as per a Reuters report.
In a bulletin examining the economic impact of artificial intelligence, the global central bank umbrella body highlighted that policymakers face an unusually complex environment as AI-driven investment, trade flows and financial market movements are accelerating before widespread productivity gains become fully evident.
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