HSBC chief executive Michael Geoghegan today called on central bankers around the world to raise interest rates to fight inflation.

He told a meeting of the influential Asia Society in Hong Kong that the authorities were not yet committed to taming inflation and predicted US interest rates would rise after the Presidential election in November, despite the belief of many that the economy is close to, or already in, recession.

"Inflation is a long-term problem because there is no long-term will to solve it," he said.

Despite turmoil in the financial markets in the wake of the subprime crisis, soaring commodity prices have driven up inflation. Record oil prices and food costs have added to the problem, particularly in Asia.

Geoghegan's comments came ahead of an informal meeting of HSBC shareholders in Hong Kong where concerns over a directors' £120 million pay jackpot are expected to be aired.

Under the scheme, Geoghegan, who earns a basic £1 million, could get a bonus up to four times his salary and a long-term incentive plan could pay equivalent to seven times salary.

HSBC faces a rebellion over the issue at its annual meeting in London on Friday. The Association of British Insurers and corporate governance adviser Pirc oppose the deal. It also faces flak from activist shareholder Knight Vinke.