Whether interest rates are temporarily higher is immaterial. In fact, what typically happens when interest rates are high is not long-term reforms, but rather short-term fixes to placate the markets. And that normally means consolidating budgets by  BIS central bankers’ speeches  3  raising taxes, which makes the recession worse.
It is in line with this that we moved, on 16 April, to raise the target for the overnight interest rate by 25 basis points. 2  BIS Review 29/2001