The Bank for International Settlements (BIS) believes that the development of artificial intelligence (AI) technology will benefit central banks. But it stresses that it cannot replace people in setting interest rates, Reuters reports.
The news agency notes that this is the first report from the BIS, known as the central bank of central banks, that focuses on artificial intelligence. Its authors believe that central bankers should use artificial intelligence to monitor data in real time, which would improve their ability to predict inflation. They remind us how much the predictions differed from the reality during the pandemic and the war in Ukraine.
Cecilia Skingsley of the Bank for International Settlements (BIS) believes that new AI models should prevent this from happening again. At the same time, she noted that the fact that they are still not fully tested and could still fail means that automatic rate setting should not be expected.
"We would like to hold people accountable for this." So, I really don't see a future where artificial intelligence sets interest rates," said Cecilia Skingsley.
The mentioned bank pointed out that the emergence of artificial intelligence also means new threats, such as new cyber attacks, or the strengthening of existing ones, such as herd behavior, bank sieges and panic selling of financial assets.