Financial markets should expect elevated volatility: CBA

Commonwealth Bank chief executive Matt Comyn says financial markets should expect elevated levels of volatility, as Europe faces its biggest security crisis in a generation.

Although remaining optimistic about the economic outlook for Australia in 2022 and 2023, Comyn says: “clearly we are watching with interest what is happening in Russia and broader Europe”.

“We recognise there is going to be volatility and that situation is rapidly evolving.”

Comyn has spoken to reporters following a breakfast in Sydney to launch a CBA campaign to protect victims of domestic violence, with Deloitte Access Economics revealing financial abuse costs the economy almost $11 billion a year.

With Russia ready to invade Ukraine, and as the US and European Union broadened Russian sanctions and deployed troops to the Baltic States amid concerns the conflict will see Russia cut European gas supply, Comyn says: “In the near term that is likely to have an impact on volatility in financial markets, in funding markets, in currency markets, [and for] oil”.

“Australia is not a large trading partner [with Russia], so we don’t have a lot of direct exposure to that region. But clearly, geopolitical risk can have broader implications, so that is something we are watching.”

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