It is said that Govt. may increase interest rates to tackle inflation. which interest rates?

Inflation means higher prices. Higher prices is the effect of higher demand. Higher demand is the effect of money in circulation (there are plenty of money). So, in order to avoid higher prices (to reduce inflation), Central Bank must lower the money. The best way to achieve this, is to increase interest rates. Higher interest rates means that the cost of money is getting higher, thus less people would be willing to borrow money. Thus, lower money demand => lower demand for goods => lower prices => lower inflation.

I hope this helps

Increasing interest rates on this occasion were designed as a mechanism to reduce or maintain the current level of inflation. It is hoped it will slow people's spending down - but the big problem is at the top of the tree - the million pound bonuses paid out. When the lucky receivers go out on their property or spending spree they actually push up prices for all of us as there is a trickle down effect from that much disposable cash being put in to the UK economy.

In Australia when the reserve bank increases rate that affects all rates Mortgages go up but then so do Term deposits ad other savings accounts,so its good for some not good for others

Increasing interest rate in terms of budgetry allocation for the economy of the country...

i have absolutely no idea