FRANKFURT Reuters The worlds biggest central banks will happily live with higher inflation and investors now aggressively betting on a quicker end to monetary stimulus are all but certain to be proved wrong.

After a decade of underestimating inflation, central bankers in the United States, Europe and Japan have every reason keep money taps open and policymakers are even rewriting their own rules so they can let price growth overshoot their targets.

If anything, central banks are more likely to nudge up stimulus, particularly in the euro zone, keeping borrowing costs depressed and ignoring the inflation hawks at least until growth is back to prepandemic levels and not just fleetingly.

The Reserve Bank of Australia already launched a surprise bond buying operation while the European Central Bank has repeatedly warned investors not to push yields too high, unless they want to fight its 1 trillion euro war chest.

The argument behind the inflation warning is that once economies reopen, massive government stimulus will combine with pent up consumer demand, unleashing spendingfuelled price pressures unseen for decades.

Although top economists are weighing in on both sides of the debate, the voices that really count all seem to be downplaying the threat.

Inflation dynamics do change over time but they dont change on a dime, Federal Reserve Chair Jerome Powell said.

We dont really see how a burst of fiscal support or spending … that doesnt last for many years, would…