ANZ boss warns global markets in 'dangerous situation' as interest rates rise

Detailed summary

ANZ boss Nuno Matos says he sees a "dangerous situation" of rising rates and frothy equity markets.

Nuno Matos says equity markets at record highs and rising interest rates are a "dangerous situation".

He says he's not expecting Australia's economy to experience a recession.

Mr Matos says governments should be thinking about how they compete for global capital.

The head of ANZ says he sees a "dangerous situation" with global markets.

Nuno Matos, ANZ's chief executive, says the competition for capital is intense globally, driven by the AI and data centre build-out, which is feeding an expenditure super-cycle.

He says the combination of that race for capital, the prevailing level of government expenditure, higher and stubborn inflation and rising interest rates are a serious problem.

"Globally, undoubtedly, the combination of those four factors, and Australia is not different in that regard," he said today.

"They are contributing to a competition for capital. We never saw this amount of spending in our lives, in our lifetimes.

"We have a very curious situation in the world where we have equity markets at record highs, basically because of the tech wave and basically because of the AI wave, but at the same time you have record highs of interest rates.

Opening of the article, excerpted from ABC Business. To read the rest, open the article on the publisher's site.