European Central Bank President Christine Lagarde has indicated that the eurozone economy is undergoing structural change, driven by investment in artificial intelligence (AI), and assured that decisions on interest rates will only be made on the basis of available data, amid persistently high uncertainties, reports Euronews.
Analysts said one of the most striking messages from the ECB president during Thursday’s press conference was about the central role of AI, given investments by large companies and SMEs. Spending is focused on powerful computers, telecommunications networks and intangible assets such as data and software, rather than traditional investments in physical capital, writes Agerpres.
While Lagarde acknowledged that AI could eventually increase output, she cautioned against premature conclusions about its impact on so-called “neutral monetary policy.”
In an environment characterized by geopolitical shocks, trade fragmentation and high uncertainties, the ECB president argued that such structural parameters are relative and were not discussed by the Governing Council at last Thursday’s meeting.
Digital Euro
Regarding the digital euro, Lagarde announced that the ECB has completed the technical and preparatory work and that responsibility now lies with the political institutions.
The project, which aims to create a public digital currency, is currently being analyzed by the European Council and the European Parliament.
“Our ambition is to ensure that in the digital age there is a currency that acts as an anchor of stability for the financial system. The digital euro is an instrument designed for monetary sovereignty rather than innovation,” the ECB official said.