HSBC boss accuses central banks of not fighting inflation
May 29, 2008
Chief executive of HSBC has accused the world’s central banks of lacking the will to fight inflation and he also predicted US interest rates will rise in November.
In a meeting with shareholders in Hong Kong Michael Geoghegan said “Inflation is a long term problem because there is no long term will to solve it.” He asked central banks to raise interest rates and also suggested that more regulation will be needed. Mr Geoghegan also said banking would need to change to avoid a repeat of the current credit crisis.
Continuous rises in commodity and food prices have seen consumer price indices peaking in almost every major economy. Earlier this month the Bank of England said that inflation would not return to its 2 per cent target before 2011.
www.hsbc.co.uk
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