central banking

AI in Finance & Economics

AI-Powered Inflation Nowcasting: What Project Spectrum Means for Policy in 2025

This year the Bank for International Settlements (BIS) quietly moved a research agenda into the public square. Its Project Spectrum explores how generative AI can automatically categorize huge volumes of retail price data and feed that into faster — and potentially more accurate — inflation nowcasts. In other words, central banks are experimenting with AI-powered inflation nowcasting to spot price…