Rising Interest Rates Herald New Era of Higher Borrowing Costs Worldwide

Interest rates are rising globally after a decade of ultra-low and even negative rates, upending housing, corporate deals, stocks, and government budgets.

The US benchmark rate hitting 5% signals a new era of higher borrowing costs that will filter through the global financial system.

Higher rates mean more strain for indebted consumers, companies, and governments that relied on cheap money.

Risky assets like stocks look relatively less attractive as yields on safer government bonds rise.

Central banks are staying focused on lowering inflation and aren't rushing to cut rates, despite market turmoil.