The unexpected AI boom contributed to the RBA’s interest rate turnaround

Michele Bullock, governor of the Reserve Bank of Australia, has said artificial intelligence is boosting the global economy and is one of the reasons the bank has been forced to do a U-turn on raising interest rates.

Bullock told a Senate committee on Thursday that extraordinary growth in AI investment boosted the global economy last year, just as the RBA had expected a slowdown amid uncertainty caused by U.S. President Donald Trump’s tariffs.

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