INSIGHT · UK
Bank of England flags AI growth slowdown as emerging threat to government bond stability
The BOE has warned that missed AI productivity gains and slower economic growth from AI underperformance could destabilize U.K. government bond markets. The central bank is now monitoring AI deployment trajectories as a macro-financial stability factor.
WHY IT MATTERS
BOE treating AI productivity as a material input to monetary and financial stability policy; banks must now anticipate AI-driven macroeconomic shocks as a regulatory concern and stress-test accordingly.
Source: WSJ · 2026-10-04