Global Interest Rates Soar Amid Energy Crisis

Interest rates are rising again across major economies as the conflict in the Middle East drives up energy costs and reignites inflation. Global debt has surpassed $365 trillion, putting pressure on households, businesses, and governments. The US Federal Reserve and European Central Bank have raised interest rates, while China has kept its benchmark lending rate at a record low.

Policymakers are divided over how far to go in raising rates, balancing the need to contain inflation against the risk of weakening growth. Some experts see this as a short-term response to an energy shock, while others worry about a prolonged squeeze on the global economy.