AI Can Help Predict Inflation, Bank of England’s Greene Says (1)

The Bank of England is experimenting with artificial intelligence to help forecast inflation and hone its communications, according to rate-setter Megan Greene.

At a conference in London on Thursday, she said the bank was testing a number of uses for the technology, from providing early warning signals of financial crises to analyzing the labor market, and found that it can produce useful short-term predictions about the direction of consumer prices.

She said there are “massive” opportunities to use AI to help track the economy but cautioned that the stakes are high for central banks using it for monetary policy ...