A central bank that is mandated to price stability has to accommodate the increase in demand for currency. At the same time, it has to ensure that it never becomes fiscally or financially dominated. Yet would a strong expansion in central bank money not be inflationary? No, an expanded central bank liquidity buffer is non-inflationary under these conditions.
When it is used as a store of value (not as a means of payment) and a security buffer for weak financial institutions, money becomes temporarily disconnected from spending decisions. Under these conditions, a large stock of base money is a sign of deflationary risks rather than a harbinger of future inflation, as was observed in the 1930’s.