UBS Group CEO Sergio Ermotti told CNBC on Thursday that financial markets have bred a dangerous complacency while geopolitical and economic risks continue to accumulate. He expects persistent inflationary pressures to force major central banks to continue raising interest rates, which will remain high for the foreseeable future. Ermotti believes that the European Central Bank may be the first to initiate a new round of rate hikes, followed by the Federal Reserve and the Bank of Japan, with several rate hikes expected to materialize in the coming months.