Economics
Jim O’Neill Says the BOE Is Raising Rates to Save Credibility
- Former Goldman economist claims central banks acted too late
- Inflation targeting regime has ‘outlived its sell-by date’
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Central banks acted too late to tame inflation and may now have to raise interest rates too aggressively simply to restore their credibility, according to Jim O’Neill, a former Goldman Sachs Group Inc. chief economist and ex-U.K. government minister.
Speaking to lawmakers on Monday, O’Neill said officials don’t “have the slightest idea what has really happened or what is going on” with surging inflation because it is about “a lot of complex forces.”