Economic factors like interest rate, exchange rate, inflation and economic growth have a major contribution to the trend being followed in the economic cycle. These factors are influential towards the economy because they affect the overall economy. The monetary policies set out the exchange rate and interest rate.
The engine of growth of the contemporary world is driven by human productivity coupled with the government’s incentivisation policies for work. While rapidly growing technology-led industrialisation characterises the 21st century
The relationship between interest rates, inflation, and unemployment for a country has been one of the most important and highly debated subjects in policy making circles of macroeconomics (Burdeken et al., 2020). Interest rate is a key policy tool of central banks of all countries which depicts the cost of borrowing, and conversely it also represents the reward of saving capital (Agenor et al., 2018).
Economic growth and unemployment have remained a major field of interest for scholars as it allows the researchers to provide suggestions for implementing the relevant economic policies and strategies that can contribute to the economic growth (Soylu, Çakmak and Okur, 2018; Ramzan, 2021;
The critical indicators that show the country’s economic performance are unemployment, inflation and economic growth. Identifying the relationship between these elements is necessary when making and applying economic policies. Inflation and unemployment have become significant issues in developing countries (Baharumshah, Slesman & Wohar, 2016).
