You are working as an economic analyst in the BMA Capital and assigned a task from your research head related to forecast the Nominal Interest rate and its possible impact on the economic fundamentals. Therefore, you have gathered the following data for your working, current nominal interest rate stood at 8% and the expected inflation will be in range of 6.40% - 7.50% going forward with real economic growth would be in range of 0.25% - 1.50%.

Alternatively, as we all know about the hard time facing due to COVID-19 which impact the global economic growth as well as Pakistan too, so what would be your expectation the GDP/Interest and Exchange rate forecast and in case of remedy available in Pakistan then how your forecast will deviate from the initial expectation.

Instructions:

you need to write brief report based on the data you have gathered what would be your analysis regarding the interest rate forecast keeping in mind the economic circumstances and international restrictions on Pakistan?