Bank of England, IMF Fear Market Correction as AI Bubble Talk Intensifies

‘Buckle up: uncertainty is the new normal and it is here to stay,’ IMF Managing Director Kristalina Georgieva said.

People walk near the Bank of England building in London, on Feb. 3, 2025. Toby Melville/Reuters

The Bank of England and the International Monetary Fund (IMF) have become the latest institutions to warn of a market correction driven in part by a potentially deflating bubble in artificial intelligence.

According to minutes from its Oct. 2 policy meeting, the Bank of England expressed concern about the increasing “risk of a sharp market correction.”