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Monetary Authority of Singapore Chief Economist: After the increase in AI productivity, there may be room for easing

According to the Straits Times, Edward Robinson, Chief Economist of the Monetary Authority of Singapore, stated at the Beijing Financial Street Forum on October 20 that once artificial intelligence leads to widespread productivity improvements, central banks may relax monetary policy. However, currently, the AI investment boom is driving demand, and policies should maintain appropriate restrictions. He pointed out that AI-related investments are driving economic growth, but the technology has not yet brought significant productivity improvements to the broader economy, and he called for a gradual, data-driven approach.The Monetary Authority tightened monetary policy in April and July 2026 due to rising inflation risks, and maintained the policy unchanged in October. An October 14 statement warned that if the AI boom generates broader economic spillovers and raises unit labor costs, domestic inflation may remain high. Robinson noted that AI-driven electronic products accounted for over 70% of this year's export growth in Asia, but the growth of industries producing AI-related technologies mainly stems from increased investment and more intensive use of existing resources, rather than efficiency improvements. He cited OECD estimates stating that if sufficiently widespread and appropriately invested, AI could increase total factor productivity growth by up to 0.6 percentage points annually.

Bank of Japan Governor Kazuo Ueda: Monetary policy has entered a new phase and will continue to raise interest rates

According to Jinshi Data, Bank of Japan Governor Kazuo Ueda stated that Japan's core inflation is close to 2%, marking a policy shift, and the central bank's policy has entered a new phase where inflation cannot be allowed to rise further. Due to core inflation being close to 2% and the financial environment remaining accommodative, the Bank of Japan will continue to raise interest rates and adjust its monetary easing policy. The central bank will discuss whether to adjust the assessment of "core inflation close to 2%" at the upcoming meeting.Kazuo Ueda mentioned that the situation in the Middle East, demand for artificial intelligence, and exchange rates will influence the timing of interest rate hikes. The central bank has been monitoring the impact of the weakening yen and the Middle East situation on inflation. He also stated that it is difficult to make a clear statement about Japan's neutral interest rate, and the stability of 2% inflation is becoming increasingly important. The central bank will focus on consolidating the 2% inflation target. Additionally, Ueda noted that the main takeaway from this week's meeting (including the G20) was the communication with other policymakers regarding the impact of the Middle East conflict and demand for artificial intelligence on the global and Japanese economy, and there was nothing heard that deviated from the Bank of Japan's fundamental views. He exchanged opinions with Federal Reserve Chairman Waller but will not disclose specific details; since the meeting in Asheville, he has not contacted U.S. Treasury Secretary Yellen.

first_img The Hong Kong government responds to the regulation of emerging payment platforms, with the Monetary Authority receiving 16 complaints

On October 7, at a meeting of the Hong Kong Legislative Council, legislator Chan Chun-ying raised a written inquiry regarding the regulation of emerging payment platforms. The Acting Secretary for Financial Services and the Treasury, Chan Ho-lam, provided a written response. The inquiry pointed out that in recent years, new aggregation payment platforms have emerged, reaching out to small merchants with low fees and "buy now, pay later" methods. Some platforms have reported overdue payments and false entries, and there are platforms that are registered only as financial technology companies, without obtaining financial licenses, and have not disclosed their partner organizations or operational status.Chan Ho-lam stated that the government and financial regulatory agencies continue to monitor emerging payment models and take enforcement actions within the statutory framework. After consulting the Monetary Authority and Customs, from January 2024 to September 2026, the Monetary Authority received 16 complaints regarding the suspected unlicensed issuance or operation of stored value payment tools. After investigation, one was substantiated, and the complainant did not report any financial loss. The Monetary Authority is following up with the relevant companies.The response pointed out that the Monetary Authority regulates stored value payment tools under the Payment Systems and Stored Value Facilities Ordinance. Unless legally exempt, issuing or operating without a license in Hong Kong is illegal. Money services that operate currency exchange and cross-border remittances must apply for a license from Customs unless exempted. Non-bank institutions providing "buy now, pay later" services involving loan activities must apply for a money lender license under the Money Lenders Ordinance. Cases suspected of being unlicensed or non-compliant are handled by the Monetary Authority, which may collaborate with other regulatory agencies or refer to law enforcement departments.
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