Better liquidity, which is instrumental to faster and more accurate price discovery and therefore to more-informative prices, can also be brought about by an increased presence of new institutions in new or existing markets.
The specific outcomes will depend on the details, especially on the nature of supply-side incentives in any spending or tax changes. Ceteris paribus, monetary policy - run off a sensible reaction function - will end up validating the higher equilibrium real interest rate, to keep prices from accelerating indefinitely.