China’s monetary policy framework will remain the same amid AI impact, central bank advisor says

China’s monetary policy framework will remain the same as long as the goal remains maintaining price stability, Huang Yiping, a central bank adviser and professor at Peking University, said on Friday, discussing the impact of AI on macro policy broadly.

This statement comes as the government is promoting the adoption of AI in key economic sectors and amid increasing market discussions regarding the impact of AI on future policies.

“The monetary policy framework will not change, if the goal is to achieve price stability, and I think it will probably remain the same,” Huang said at the Bund’s annual summit in Shanghai.

Whether the tools and techniques used to achieve that stability need to adapt to new technology remains an open question, he said.

“One small question is… will a successful AI revolution in the short term lead to deflation or depress prices? This can of course raise the question of whether the original inflation target, namely a lower inflation target, should be maintained,” Huang said.
Source: Reuters