BIS central bankers’ speeches  3  To my mind, the risk with high levels of public debt is not that average inflation rates will rise, but rather that central banks’ control of inflation will worsen. It is easy to see why.
If inflation rises, the central bank must determine whether the increase is likely to be lasting or temporary.9 In the latter case, there is no need to increase interest rates since inflation will return to the previous level on its own.