No. 1051 - The implications of AI for monetary policy: a first assessment

Questioni di Economia e Finanza (Occasional papers)
by Lucia Esposito, Elisa Guglielminetti, Elia Moracci, Andrea Papetti and Massimiliano Pisani
July 2026
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Artificial intelligence (AI) can affect productivity, market structures and macroeconomic dynamics through faster processes, enhanced innovation capabilities and more efficient information processing. However, AI may also increase risks to the stability of the economic system. This paper analyses the implications of these transformations for monetary policy, focusing on financial markets, economic activity, inflation and central banks' reaction functions.

AI could accelerate the transmission of monetary policy to credit and financial markets. At the same time, it may increase risks to financial stability. The pass-through to inflation could also become faster, as AI may reduce the costs that firms incur when adjusting the prices of their products. Finally, AI could enhance central banks' analytical, forecasting and communication capabilities, improving the timeliness of their response to shocks that may affect the economy.

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  1. 28 July 2026
    No. 1051 - The implications of AI for monetary policy: a first assessment
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