India has a very high rate of inflation at around 9% per annum, while in UK the inflation is close to 1.5% per annum. If you borrow money from a bank how your interest rates are likely to be applied? UK interest rates are likely to be higher than those in India, as its inflation rate is lower India's interest rates are likely to be higher than those in UK as its inflation rate is higher It depends only on the policy of the government in these countries and not on inflation. Cannot say. Interest rates have nothing to do with inflation