By Seon Jeong-min | The Chosun Daily | Updated: 2025-11-07 09:57
Governor Andrew Bailey of the Bank of England (BoE), the UK’s central bank, mentioned on the 6th that inflation appears to be past its peak and that “there could be an AI (artificial intelligence) bubble.”
Governor Bailey stated during a press conference following the Monetary Policy Committee meeting that day, “I hope and believe that inflation has passed its peak,” adding, “We need to wait and confirm that the path of inflation decline is more firmly established before considering further reductions in bank rates.”
The Bank of England kept the policy rate unchanged at 4.00% that day. The benchmark rate of 4.00% is the lowest level since February 2023. The UK’s Consumer Price Index (CPI) inflation rate in September of this year was 3.8% year-on-year, lower than the forecast of 4.0% but still above the BOE’s target of 2%.
Regarding AI, Governor Bailey said, “AI has the potential to be the next major driver in terms of productivity,” adding, “In my personal view, I believe there is a significant possibility of that happening.” However, he noted, “There is still a considerable way to go before it is actually proven,” and “at the same time, there could be a bubble.” He explained, “The market is pricing in future earnings streams, and that is uncertain,” and added, “We are naturally monitoring the implications for financial stability and the potential spillover effects on the broader economy.”
