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BoE's Breeden says it is important firms are stress testing AI valuations; Iran war shock is less likely to become embedded and lead to inflationary dynamics that members might need to lean against

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BoE's Breeden highlights AI valuation risks and a soft economic outlook with labor slack, suggesting that Iran-related shocks are unlikely to embed persistent inflation as of July 2026.

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We have a softish economic outlook; we have slack in the labour market. I said back in June that I expected the outlook for energy prices to be uncertain, and I think that has proved to be the case

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