AI Market Bubble Warning: Bank of England's Caution
Update: 2025-11-06
Description
Bank of England Governor Andrew Bailey warns of potential AI-induced market bubble, highlighting risks of overvaluing future returns from AI technology. Central banks monetary policy report indicates stretched equity valuations, particularly for AI-focused tech companies. Officials suggest market correction could ease inflationary pressures, but also warn of potential tightening of financial conditions and spillover effects on the UK economy.
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