# Artificial Intelligence Could Reshape Monetary Policy Through Two Channels

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/25679
Published: 2026-09-30T07:44:33.000Z
Updated: 2026-09-30T07:44:33.000Z
Section: Regulation

> AI may influence central banks indirectly through economic conditions and directly through the way interest-rate decisions move through financial markets.

Artificial intelligence could reshape monetary policy through changes in economic conditions and the way interest-rate decisions move through financial markets and the wider economy.

A framework published in January 2025 separates AI’s monetary-policy effects into indirect changes to the macroeconomy and direct changes to policy transmission.

The indirect effects may emerge through shifts in productivity, inequality and other conditions that influence the appropriate monetary-policy stance.

The direct effects concern how policy-rate or balance-sheet changes move through the financial system and the wider economy to affect inflation, growth and employment.

AI may also change central-bank business processes, with computer programs taking on some tasks and employees adapting to new tools.

New methods involving complex systems research, neural networks and large language models may expand the analytical tools used for economic and financial analysis and forecasting.

Changes in the broader economy and financial system could affect monetary policy, banking supervision, financial stability and payment and settlement infrastructure.

The framework treats direct and indirect effects as separate but related channels through which AI may influence central-bank work.

It presents a conceptual basis for assessing how central banks can prepare for monetary-policy challenges linked to the expansion of artificial intelligence.