Bank of England warns of growing risk that AI bubble could burst

<p>Possibility of ‘sharp market correction has increased’, says Bank’s financial policy committee </p><ul><li><p><a href="https://www.theguardian.com/business/live/2025/oct/08/spot-gold-rises-above-4000-first-time-vertu-motors-warns-profit-hit-jlr-disruption-federal-reserve-imf-business-live">Business live – latest updates</a></p></li></ul><p>The Bank of England has warned there is a growing risk of a “sudden correction” in global markets as it raised concerns about soaring valuations of leading AI tech companies.</p><p>Policymakers said there were also threats of a “sharp repricing of US dollar assets” if the Federal Reserve lost credibility in the eyes of global investors. It comes as Donald Trump’s <a href="https://www.theguardian.com/us-news/2025/sep/01/trump-us-fed-ecb-christine-lagarde">continues to attack the US central bank</a> and threaten its independence.</p> <a href="https://www.theguardian.com/business/2025/oct/08/bank-of-england-warns-of-growing-risk-that-ai-bubble-could-burst">Continue reading...</a>