mohammad khoshchareh , a member of the faculty of economics, university of tehran. an increase in interest rates exacerbates inflation because it increases production costs. the interest rate of facilities that are considered for production increases with the increase of the interest rate, which has the effects of inflation brings along yasser jabraeili, economic expert. under the pretext of curbing inflation. if we increase the bank interest, the cost of financing for the producer will increase, this will lead to inflation and reduce the purchasing power of the people, and stagnation will occur . kamran nazri, an economic expert , inflationary expectations have increased and people are trying not to have too many assets in the bank, and as a result, long-term deposits have turned into short-term deposits and money, and this has created a problem for banks. banks with the peak demand of depositors to withdraw balance from long-term deposits faced, and this causes the banks to face liquidity problems, and in such a situation, an increase in the interest rate is inevi