Back to Articles
Michele Bullock Says AI Boom Forced Reserve Bank to Reverse Interest Rate Cuts

Australian Financial Review

ENRICHED

Details

Date Published
4 June 2026
Priority Score
2
Australian
Yes
Created
4 June 2026, 08:00 pm

Authors (1)

Description

RBA governor Michele Bullock told a senate committee that extraordinary growth in artificial intelligence investment has ignited the global economy.

Summary

Reserve Bank of Australia Governor Michele Bullock identifies rapid AI investment as a primary driver of unexpected global economic resilience, complicating inflation management and monetary policy. This shift highlights how advancements in frontier AI capabilities can generate significant macroeconomic shocks that bypass traditional forecasting models. While the article focuses on economic stability rather than direct catastrophic safety risks, it underscores the systemic impact of AI on national infrastructure and the necessity for governance frameworks to adapt to the velocity of AI deployment. The findings indicate that AI adoption is already reshuffling global fiscal priorities and influencing Australian sovereign risk assessments.

Body

PolicyEconomyAustralian economyPrint articleLea JurkovicEconomics correspondentJun 4, 2026 – 6.14pmReserve Bank of Australia governor Michele Bullock has declared artificial intelligence is supercharging the world economy and is one of the reasons the bank was forced to U-turn on increasing interest rates.Bullock told a Senate committee on Thursday that extraordinary growth in AI investment ignited the global economy last year, just as the RBA was expecting it to slow amid uncertainty caused by US President Donald Trump’s tariffs.Loading...SaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreAustralian economyAIMichele BullockRBAFetching latest articles