Answer: They generally tend to increase
Notes: During an inflationary phase, central banks usually tighten monetary policy to control price rise. This often pushes up market interest rates, and banks may revise lending and deposit rates upward. Higher inflation expectations also affect the cost of funds and the return demanded by savers. Therefore, the general trend in bank lending and deposit interest rates during inflation is upward, though the exact movement can vary with policy and market conditions.
