RBA's Hunter says AI investment will put some upward pressure on inflation in the near term
Sarah Hunter, the RBA's Assistant Governor (Economic), told a UBS conference that AI investment will put some upward pressure on inflation in the near term. She says supply will catch up with demand over time, and the initial inflationary pressures from AI investment are likely to dissipate. She also says there is limited evidence so far that AI has materially lifted productivity.
NoteThe speech also treats AI as a financial stability question: if returns to AI investment disappoint, some asset prices, including equities and corporate debt, will be exposed to sharp repricing.
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