If they continue to rise, they will have a negative impact on NIRG; in other words, in order to maintain a given rate of inflation, growth may have to slow. Chart 2: Crude Oil  Even if they do not rise, high prices in absolute terms will have a bearing on the commercial viability of investments across the board.
When the nominal rate rises as a result of higher inflation, tax revenue increases, but at the same time, expenditure also increases due to higher wages and costs. Until now, the government bonds already issued at higher rates have been refinanced by those newly issued at lower rates, and the total interest payments of government bonds have been reduced.