AND INTEREST RATE
rates in Pakistan have a direct link with
inflation, if inflation goes on the
increase, the interest rates would go up
automatically. To judge the movement of
interest rates one must keep in mind that
as and when inflation increases or
decreases interest rates would
automatically go up or down accordingly.
These outlines on movement of inflation
and the interest rates were given by the
Governor State Bank of Pakistan (SBP), Dr.
Ishrat Hussain, last week at a meeting
held at the SITE Association of Industry
where he predicted that banking interest
rates will go up further in near future.
In conformity to this guideline it seems
that the inflationary pressure should also
be mounting in the days to come.