Quote:
Originally Posted by sahar sheikh
discount rate or inflation me kya relation hota hai, can anyone tell?
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both r different things :
Discount rate : its the interest rate that any commercial bank is charged on borrowing the short term securities (T bills,PIB's etc) from the SBP or directly from govt or any other issuer of those securities.
while
inflation rate : the rate of change of prices (as indicated by a price index) calculated on a monthly or annual basis.