Vol 1 No 1 (2015)

Impact of Interest Rate and GDP Growth Rate on Inflation of Pakistan (Time Series Analysis From 2005-2014)

Dr. Mohammad Masiullah Jatoi
Safia Khan

Inflation refers to the sustained increase in the aggregate or general price level in any economy; that fluctuates because of the different economic factors. In this study two independent variables (interest rate & GDP growth rate) and one dependent variable (inflation) is designed to examine their impact. The hypotheses regarding the impact were made to determine the significance between variables. This research work proved that there is significant impact of interest rate & GDP growth rate on inflation that’s why both hypotheses cannot be rejected. Spss18 has been used for the interpretation of results by applying the technique of Linear Regression. Inclusively statistical results recommended that interest rate & GDP growth rate is significantly related with the inflation rate.

SALU-CER Editor in Chief
Working as faculty member in institute of Commerce Shah Abdul Latif University Khairpur since 12 September 1996. At present working as Professor and Director Institute of Commerce of Shah Abdul Latif University Khairpur. Also working as founder Editor-in-Chief of SALU-Commerce & Economics Review since 2015.

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