Jim O’Neill wrote to the Financial Times:
“Demand in the so-called Bric economies of Brazil, Russia, India and China is now more important to the world economy than the US and Europe.
China is obviously the most important of the Brics, and in this regard, Tuesday’s new Chinese inflation figures are especially significant.The world needs a strong domestic Chinese economy more than ever. I think we are likely to get one. Pre-global crisis China was led by exports and investment. Post-crisis, it will be led by its consumers. Yet this cannot happen if Chinese inflation is rising.”
His point is: at this dubious world economy, the BRIC governments should not raise interest any further.
Full article here.