The Bank of England drew attention to the effects of geopolitical tensions and artificial intelligence-induced operational risks on financial markets.
BoE Financial Policy Committee stated that energy price increases arising from the US/Israel-Iran conflict and operational risks in artificial intelligence systems have increased vulnerabilities in global markets and the risk outlook has worsened since July.
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The BoE Financial Policy Committee is tasked with monitoring the resilience of the financial system and managing systemic risks.
In the minutes of the September meeting of the BoE Financial Policy Committee (FPC), it was noted that uncertainty regarding the course of growth and interest rates in some developed economies has increased again due to the US/Israel-Iran War.
It was stated in the minutes that the increases in the prices of oil, natural gas and refined petroleum products caused the negative supply shock on the global economy to continue for a longer time, and that this situation increased the possibility of fragilities in the government bond and risky credit markets and deteriorations in the asset markets to occur simultaneously.
The minutes also stated that the rapid increase in debt issuances related to artificial intelligence has also expanded the level of exposure of capital markets to developments in this field. "Recent events in the test environments of leading artificial intelligence systems and autonomous models taking unexpected actions strengthen FPC's calls for companies to be prepared for artificial intelligence-induced cyber security and operational risks." The expression was used.
The minutes stated that the possibility of interconnected risks occurring simultaneously increased due to these developments, and included a warning that the risk outlook had worsened since the last FPC meeting in July.
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