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Story summary
- Reserve Bank governor Michele Bullock warned AI may be a bubble with no clear productivity boost.
- She said AI adoption adds inflation pressure via data-centre spending and little supply-side impact.
- Bullock noted house prices fell 3.1% over three months after three RBA rate hikes.
- Markets give over 90% probability the cash rate will rise to 4.6% next week.
- Analysts see a roughly 50/50 chance of a November hike to 4.85%.