Financial markets appear to be shrugging off the geo-political tensions in Ukraine and the Middle East, Reserve Bank governor Glenn Stevens says.
Volatility in financial markets is exceptionally low at the moment, Mr Stevens said, with last week's Malaysia Airlines crash and Israel's ground offensive in Gaza seeming to have little impact.
"Markets for the most part have been remarkably sanguine about a whole range of things lately," he said on Tuesday after his annual speech to the Anika Foundation.
"Markets, it would appear in the actual pricing, are giving pretty low weight to the possibility that something will go wrong.
"As for Ukraine and Gaza and a number of other things, I guess we have to watch this space."
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