Bank of England Governor Andrew Bailey has warned the UK to prepare for potential financial market disruptions driven by artificial intelligence, citing cyber threats and increased market volatility. The central bank is actively monitoring the rise of AI-linked debt issuance and concentrated investments in the sector. Market pricing indicates an 84.5% probability of a rate increase following the November 2026 meeting. Bailey’s statement signals a shift in regulatory approach, treating AI as a tangible financial stability issue rather than a hypothetical threat. Market participants will closely watch the upcoming Bank of England meeting for any policy adjustments.
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