Rising interest rates have a significant impact on global markets, affecting various aspects of the economy from investment to international trade. First, when interest rates increase, borrowing costs also increase. This has the potential to reduce consumer spending and investment by companies. For example, companies may delay expansion projects or purchase new equipment, which in turn could slow economic growth. Furthermore, rising interest rates attract foreign investors to place their funds in countries with higher yields. This movement of capital often causes the country’s currency to strengthen. For example, the US dollar usually strengthens when the Federal Reserve raises interest rates. A strengthening currency can affect the competitiveness of exports, making domestic goods more expensive on international markets and potentially reducing export volumes. In addition, the systemic impact of rising interest rates can be felt in developing countries. With rising interest rates in developed countries, capital outflow from these countries could become severe. Countries that depend on foreign loans could face difficulties in repaying debt, carrying the risk of default. This can cause economic and social instability in these countries. Rising interest rates also affect stock markets globally. When borrowing costs increase, companies have to face higher operational expenses. In many cases, investors tend to sell shares of companies that are considered risky. This can contribute to an overall stock market decline, creating volatility and uncertainty among investors. On the other hand, certain sectors such as banking and finance can benefit from a higher interest rate environment. Banks can increase profit margins on more expensive loans. However, other sectors, such as real estate, may feel a negative impact, as rising interest rates make mortgages more expensive, which could reduce demand for homes. Rising interest rates also have an impact on inflation. In the short term, it can help curb inflation by reducing consumer purchasing power. However, if the central bank responds slowly, it could cause the economy to slow down sharply, potentially leading to a recession. The balance between controlling inflation and economic growth is very crucial amidst tight monetary policy. At the global level, economic interconnections between countries cause the impact of interest rates to be felt widely. Countries with debt denominated in foreign currencies will see their debt costs spike. This could lead to a debt crisis in some countries that are not financially prepared to face this situation. In addition, global demand for commodities could be affected, wasted on the energy and raw materials sectors, in response to unexpected capital flows. With shifts in monetary policy in major countries, investment and trading institutions still need to evaluate their strategies. Adaptation to new economic conditions is the key to surviving and developing in a dynamic global market. Rising interest rates are not only an indicator of economic strength but also a reminder of the uncertainty that exists in the global ecosystem. Flexibility and innovation are important to overcome these impacts.