Archive · 12 Nov 2025
RBA Official Warns of Market Complacency Amid Geopolitical Risks
Imagine grown-ups at a big money meeting.
One person from Australia's money bank said that people who invest money in things like stocks might not be worried enough about big problems happening in the world.
These problems could be fights between countries or big changes in how economies work.
He noticed that some countries are buying a lot more gold, which might be because they're worried their money could be taken away.
He also said that the prices for investments seem too low, like people aren't expecting any bad things to happen.
He thinks it's strange that the investment world seems so calm when there are so many potential issues.
RBA Assistant Governor Brad Jones warned of market complacency regarding geopolitical and macroeconomic risks.
He cited emerging evidence of fragmentation in the global financial system, including surging gold holdings by a cohort of countries.
Jones suggested that the risk of asset seizure sanctions is a factor behind increased central bank gold reserves.
He noted that risk premiums across asset classes have fallen to concerningly low levels, indicating markets are not pricing in potential risks.
The RBA official stressed that while fragmentation in payments and safety nets is a concern, it remains more of a fear than a reality currently.
- Who
- Brad Jones, Assistant Governor of the Reserve Bank of Australia
- What
- Warned that financial markets may be underestimating geopolitical and macroeconomic risks, citing evidence of global financial system fragmentation
- When
- Wednesday
- Where
- Broadbeach, Queensland, at the Association of Superannuation Funds of Australia conference
- Why
- Noticed concerningly low risk premiums across asset classes and a divergence in central bank reserve management, particularly increased gold holdings, suggesting markets are not adequately pricing in potential geopolitical risks.
- Speaker
- Brad Jones, RBA Assistant Governor
- Event
- Association of Superannuation Funds of Australia conference
- Location
- Broadbeach, Queensland
- Date
- Wednesday
- Key Concern
- Markets underestimating geopolitical and macroeconomic risks
- Evidence of Fragmentation
- Surging gold holdings by a small group of countries, potential for asset seizure sanctions