Monetary policy could ease as AI productivity gains take hold: MAS chief economist

Source: The Business Times
Published on: 2026-10-20 10:17

AI investments are driving economic growth but broad-based productivity improvements have yet to materialise, says Edward Robinson [SINGAPORE] Central banks may be able to ease monetary policy once artificial intelligence delivers widespread productivity gains, but they should keep policy appropriately restrictive for now as the AI investment boom fuels demand, said Monetary Authority of Singapore (MAS) chief economist Edward Robinson on Tuesday (Oct 20). While AI-related investments are driving economic growth, the technology has yet to deliver significant productivity improvements across the wider economy, he said. Speaking at the 2026 Beijing Financial Street Forum, Robinson cautioned that misjudging this transition could carry risks, calling for a gradual, data-dependent approach to monetary policy. MAS tightened monetary policy in April and July this year amid rising inflation r...

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