"Part of the problem with QE was the fact that you're basically nationalizing bond markets. Bond markets have a very very useful role to play when you've got inflation, which is they're an early warning indicator," King told CNBC's Steve Sedgwick. Central banks around the world have hiked interest rates aggressively over the past year in a bid to rein in soaring inflation, after a decade of loose financial conditions. The swift rise in interest rates has intensified concerns about a potential recession and exposed flaws in the banking system that have led to the collapse of several regional U.S. banks . The prolonged period of loose monetary policy after the global financial crisis equated to central banks "nationalizing bond markets," and meant policymakers were slow off the mark in containing inflation over the past two years, according to HSBC Senior Economic Adviser Stephen King.

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