Why mostly high inflation rate would be have high interest rate?

Question

Why mostly high inflation rate would be have high interest rate?

Answer 1

wrong...the lower the interest rate the higher the inflation gets.

Answer 2

To bring the inflation down and for decreasing negative return on fixed deposits. Higher interest rate would reduce money supply,which will help in bringing the inflation down.

Answer 3

interest rates are all about the time value of money.  people won't invest in securities if they don't think they'll have a higher buying power tomorrow than what they're giving up today by investing.

so if inflation is 3%, then i won't invest in anything yielding less than 3% in interest.  plus, i want to be compensated for not being able to spend my money today, so i would probably demand a minimum of 4% (or something) in interest.

so the higher i expect inflation to be, the higher a minimum return i will demand.