Will interest rates still exist in a Bitcoin world?

I was thinking about interest rates and how it all doesn't really make sense. The Fed continues to raise interest rates to bring inflation down of products, but then people (with savings) continue to make more money off the savings rates, and worse, interest rates make everything more expensive. Therefore, people demand higher wages, which companies have to pay for top talent. In order to offset the costs, they raise prices, etc etc inflation continues forever.

We all get that none of this makes sense. But in a Bitcoin world, I suppose there would still be a place for interest rates but only against a mortgage or loans for a car for instance. People could lend out their bitcoin for a promise to repay the bitcoin with interest. But in this world, you'd assume that the value of bitcoin continues to increase... therefore the car becomes more expensive to pay off over time.. etc.

So my brain could only take this concept this far... help?

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