Ferghana state university "Social and humanitarian sciences" department

Conculusion
Interest rates are a key tool in controlling inflation. An increase in interest rates makes it more attractive for people to save money. If people are saving money, they are not spending money, which in turn will start to bring down price levels. Increasing interest rates also makes it less attractive for people to borrow money as they will have larger interest repayments. Imagine the difference in taking out a mortgage with a 1% interest repayment rate compared with a 10% rate. This affects consumers' disposable income.
The key balancing act that governments and central banks must consider is the impact on economic growth. Generally, higher interest rates can tame economic growth as the investors question the investment potential of the country.
If geopolitical factors diminish, there could be a positive supply side impact. The rising price of commodities such as foods and fuel may begin to fall if, for example, the Russia-Ukraine conflict stopped and production levels returned to normal. Eroding supply chain issues would also impact prices from the supply side. For example, falling fuel prices and more easily accessible routes to market could reduce transport costs. In turn, this could result in companies passing on savings to consumers in the form of lower-priced goods. That said, the Russian invasion of Ukraine does not appear to be coming to an end any time soon, and the global inflation rate issue is unlikely to have an easy solution.