Rising interest rates have a far-reaching impact on the global economy, triggering significant changes in various sectors. First of all, higher borrowing costs reduce the ability of individuals and businesses to borrow money. Consumers tend to postpone large purchases, such as a house or vehicle, because installments are more expensive. This could reduce aggregate demand, creating the possibility of a slowdown in economic growth. In the business sector, rising interest rates also affect investment. Companies that typically rely on loans for expansion may feel pressured by higher borrowing costs. As a result, new development projects or equipment purchases may be postponed, potentially leading to stagnation in innovation and productivity. As developing countries face rising global interest rates, they could see capital outflows. Investors tend to move their funds to higher-yielding markets, leaving weaker economies with reduced cash flow. This can worsen local currency exchange rates, increase import costs, and trigger inflation. Rising interest rates also have a direct impact on the stock market. Investors, seeking higher returns with lower risk, often sell shares and switch to fixed-interest instruments. This results in volatility in the stock market and can trigger a decline in asset values. The housing sector is one of the most sensitive to changes in interest rates. Rising interest rates tend to slow home price growth due to higher mortgage costs. This could cause a downturn in the construction sector, impact employment in related industries, and create knock-on effects in other sectors. On the plus side, rising interest rates can help in the fight against inflation. When central banks increase interest rates to slow the growth of the money supply, this can help stabilize prices and maintain consumer purchasing power. However, it should be noted that this step is very sensitive and has the potential to trigger a recession if not managed carefully. All parties, including the government and central bank, need to monitor the impact of interest rate policy carefully. Synergy between monetary, fiscal policy and private sector responses is very important to ensure sustainable economic growth amidst global uncertainty. Therefore, policymakers around the world must actively adapt to the developing situation, including paying attention to economic movements in developed countries and how this affects developing countries. International cooperation in terms of monetary policy will be key in facing the challenges brought by changes in interest rates, so that their impact can be minimized. Understanding the interaction between interest rates and the global economy will help market participants make better decisions in investment and business. Despite the challenges faced, the ability to adapt will be a differentiator for countries in sustaining growth in the future.