UBS CEO Sergio Ermotti stated on Thursday that financial markets have become complacent over the past few years despite increasing geopolitical and economic risks. He pointed out that new problems are constantly emerging while old ones remain unresolved, and markets face multiple headwinds including energy and shipping risks from the wars in Iran and Ukraine, supply chain tensions due to US-China competition, and rising borrowing costs and persistent inflation. Ermotti expects major central banks, including the European Central Bank (ECB), the Federal Reserve, and the Bank of Japan (BOJ), to raise interest rates in the coming months, meaning rates will remain high for the foreseeable future.