Economy / Markets
Bank of England flags AI debt and the 'right to intervene'
The Bank of England's Financial Policy Committee said the likelihood that interconnected vulnerabilities in the financial system crystallise has risen, citing the re-escalation of conflict in the Middle East, higher energy prices and government bond yields at their highest since 2008 in some markets. It warned that AI-related debt issuance reached about $450bn by early September, more than double all of 2025, and held the countercyclical capital buffer at 2%. Governor Andrew Bailey said society must keep the right to intervene.