Borrowing doesn't cause inflation

Borrowing, lending doesn't cause inflation, what causes inflation is when the banks take deposits from (the) money that has been loaned into the system. It is the deposits which cause the inflation, not the lending.

Only inflation (of the money supply) is possible, unless people choose to pay down their debts at a greater rate than new debt (deposits) are issued. Unless the debt is paid back, there will be no deflation. The money supply can only increase, unless the debt is paid back.

There will be no deflation unless the debt is paid back...