For ECB, three rate hikes priced in over next 12 months. For Federal Reserve, one rate hike priced in. Similar magnitude in UK and Japan. Long-term bond yields normalized over past five years since rise in inflation started in 2021, back at levels prior to quantitative easing era. Global debt-to-GDP rising over time, term premia have come back, but overall levels comparable to pre-financial crisis, not unsustainable. AI can potentially accelerate cyberattacks but also making defenses more effective. Speed and breadth of attack is worrying. Coordination going on, potentially broader access from models like ChatGPT allowing companies and countries to increase defenses.

Financial Stability Board has had outreach. Bodies broadly G20 aligned and IMF working on these issues. If AI models deployed to develop attacks on financial sector and firms under attack don't have access to powerful technology, there could be imbalance between attackers and defenders.

AI could accelerate cyberattacks but also make defenses more effective. Speed and breadth of attacks is worrying; coordination is ongoing through G20-aligned bodies and IMF.

If attackers deploy AI models against financial sector firms without access to such technology, there could be imbalance between attackers and defenders.

Do you worry long-term borrowing costs could spiral out of control?

Long-term bond yields normalized over past five years; back at levels prior to QE era.

To what extent does UK politics exacerbate unsustainable debt picture?

Debt-to-GDP rising globally but overall levels comparable to pre-financial crisis; not unsustainable, just normalized relative to QE era.

Are we getting closer to coordinated global response on cyber threats?

AI can accelerate cyberattacks but also make defenses more effective; speed and breadth of attack is worrying; coordination is ongoing; bodies broadly G20 aligned are working on it.

How do you assess risk of AI models to financial sector?

If attackers deploy AI models against financial sector and defenders don't have access to same technology, there could be imbalance between attackers and defenders.