World Bank says capital remains available even with AI pushing interest rates

World Bank President Ajay Banga said capital remains available to finance projects despite fears that the expansion of artificial intelligence will push interest rates higher. In an interview with CNBC's “Squawk Box” program on October 27, 2026, he said that the issue “is not really a problem”.

The statement comes at a sensitive time for the markets. According to the broadcaster, investors may be concerned about so-called circular financing and the business model associated with AI, a sector that concentrates large volumes of private investment and credit.

Banga said the World Bank mobilized US$112 billion last year, about three times the amount recorded three years earlier. This volume, in his reading, shows that international financing remains active even in a scenario of uncertainty.

In the president's view, emerging countries do not face the same resistance, because investments are concentrated in infrastructure, such as bridges and roads, and in smaller-scale uses of AI. Developed economies, according to him, seek resources for large applications, a need that Banga described as the opposite of the reality of emerging economies.

Another point highlighted is that the private capital supervised by the bank does not go to governments. With this, according to Banga, the institution stays away from fears of debt crises and problems linked to the rise in yields on public bonds in some countries.

The executive said he believes that AI will be transformative and profitable, but admitted that the path will have bumps and that no one knows when the next one will appear. The statements precede a sequence of interest rate decisions by central banks in different countries.

What changes for the investor

For those who follow interest rates, stock markets and exchange rates, the speech suggests that, in the World Bank's assessment, the supply of credit is not yet the bottleneck for the AI sector, which in theory reduces the risk of a funding crunch. Still, Banga himself recognizes volatility and uncertainty. Infrastructure and technology companies that depend on credit to invest may be sensitive to possible increases in the cost of capital and bond yields, especially on the eve of interest rate decisions. The distinction he makes between emerging and developed markets also suggests that exposure to each region may react differently. This is not a recommendation to buy or sell, and the actual effect will depend on central bank decisions, which have not yet been taken.

Automatically translated from Portuguese.