Exclusive Interview: Bank of England turning to AI and real-time data as Huw Pill warns economy is getting tougher to predict
In an exclusive interview with INTEREST from Moneyfacts, Bank of England Chief Economist Huw Pill reveals the Monetary Policy Committee (MPC) is using AI, web-scraping and real-time financial data to improve its understanding of the economy - with information collected by Moneyfacts among the private-sector data used to inform its assessment.
The Bank of England is turning to artificial intelligence and new sources of real-time financial data to identify economic signals that could otherwise be missed, Chief Economist Huw Pill has revealed.
Pill says the Bank is already using AI models to extract quantitative signals from qualitative information, including corporate reports, survey responses and conversations between the Bank's regional agents and businesses.
The Bank is also using web-scraping and other technologies to develop new sources of information for monetary policy, while data science is allowing policymakers to analyse large datasets. This includes anonymised real time data on individual mortgages and bank accounts.
“We have been using AI models to draw more quantitative signals from the qualitative data coming from corporate reports, survey responses, or agents’ conversations with their business contacts across the country.”
Pill says the technology is helping the Bank distinguish genuine economic signals from louder and more volatile data. One of the biggest challenges facing modern monetary policymakers. “Extracting signal from noise has become even more important (and difficult) over the past few years.”
You can read the full interview in issue 26 of INTEREST from Moneyfacts, pages 10 to 14.
Also in this issue:
Read more in the latest issue of the INTEREST journal. Part or all this press release can be reproduced, so long as we are sufficiently sourced.
- ENDS
INTEREST is dispatched in advance of meetings of The Bank of England’s Monetary Policy Committee and is distributed free of charge.
To receive the latest issue and sign up please visit: https://www.moneyfactsgroup.co.uk/magazines-and-reports/interest/
Have an opinion? Letters to the Editor invited: interest@moneyfacts.co.uk
Exclusive Interview: Bank of England turning to AI and real-time data as Huw Pill warns economy is getting tougher to predict
In an exclusive interview with INTEREST from Moneyfacts, Bank of England Chief Economist Huw Pill reveals the Monetary Policy Committee (MPC) is using AI, web-scraping and real-time financial data to improve its understanding of the economy - with information collected by Moneyfacts among the private-sector data used to inform its assessment.
The Bank of England is turning to artificial intelligence and new sources of real-time financial data to identify economic signals that could otherwise be missed, Chief Economist Huw Pill has revealed.
Pill says the Bank is already using AI models to extract quantitative signals from qualitative information, including corporate reports, survey responses and conversations between the Bank's regional agents and businesses.
The Bank is also using web-scraping and other technologies to develop new sources of information for monetary policy, while data science is allowing policymakers to analyse large datasets. This includes anonymised real time data on individual mortgages and bank accounts.
“We have been using AI models to draw more quantitative signals from the qualitative data coming from corporate reports, survey responses, or agents’ conversations with their business contacts across the country.”
Pill says the technology is helping the Bank distinguish genuine economic signals from louder and more volatile data. One of the biggest challenges facing modern monetary policymakers. “Extracting signal from noise has become even more important (and difficult) over the past few years.”
You can read the full interview in issue 26 of INTEREST from Moneyfacts, pages 10 to 14.
Also in this issue:
Read more in the latest issue of the INTEREST journal. Part or all this press release can be reproduced, so long as we are sufficiently sourced.
- ENDS
INTEREST is dispatched in advance of meetings of The Bank of England’s Monetary Policy Committee and is distributed free of charge.
To receive the latest issue and sign up please visit: https://www.moneyfactsgroup.co.uk/magazines-and-reports/interest/
Have an opinion? Letters to the Editor invited: interest@moneyfacts.co.uk
