RBA's Hunter Warns AI Could Jolt Stability as Rates Sit at 4.85%
Updated
Updated · Reuters · Nov 8
RBA's Hunter Warns AI Could Jolt Stability as Rates Sit at 4.85%
1 articles · Updated · Reuters · Nov 8
Summary
Sarah Hunter said AI has so far shown little evidence of materially lifting productivity or causing broad job losses in Australia, even as its economic effects are drawing closer scrutiny.
Hunter said AI may still add to inflation in the near term by boosting demand while the economy remains supply-constrained, with data-centre investment already adding to price pressures.
That investment boom is one reason the RBA has raised interest rates five times this year to an 18-year high of 4.85%, though Hunter said inflation pressure should ease as capacity expands.
Hunter also flagged financial-stability risks if AI returns disappoint, warning asset prices could face sharp repricing or disorderly adjustments; she cited tentative labor-market shifts in more AI-exposed jobs, especially among younger workers.