Central bank interest rate increases have a broad and profound impact on the global economy. In general, higher interest rates aim to control inflation by reducing the amount of money circulating in the economy. However, the impact was not only felt in the country of origin of the policy, but also spread to various other countries throughout the world. First, the immediate impact seen is an increase in borrowing costs. As interest rates rise, individuals and companies will face higher costs when borrowing money. This reduces household consumption and slows business investment, both of which can hamper economic growth. Second, the impact on the capital market is also significant. Higher interest rates generally make bonds more attractive than stocks, so investors may switch from equity markets to bonds. This can lead to a decline in share values and volatility in financial markets. Furthermore, many developing countries have foreign debt in US dollars. With rising interest rates in the US, the dollar tends to strengthen, thereby increasing the debt burden in their local currency. This could trigger a debt crisis and worsen economic instability in these countries. In the context of global business, multinational companies operating in several countries will also feel the impact. Rising interest rates could impact their investment decisions, as higher borrowing costs make new projects less attractive. In addition, exchange rate instability due to dollar fluctuations causes further uncertainty for companies. In terms of international trade, higher interest rates in certain countries can trigger reactions from other countries. Countries wishing to maintain the competitiveness of their exports may be forced to lower their interest rates, which in turn could result in exchange rate instability and affect the trade balance. Rising interest rates could also impact consumer sentiment. With borrowing costs rising, consumers may be more careful about their spending, as well as delaying large purchases such as a home or car. This has the potential to reduce overall demand and result in slower economic growth. Lastly, certain sectors become more vulnerable. The property sector, for example, will feel a significant impact when interest rates increase. Demand for home purchases could fall, as mortgages become more expensive. This could slow down the growth of the construction sector and its impact on employment. The impact of rising interest rates is complex and interrelated. When central banks take steps to control inflation, the reactions of various sectors around the world can affect the overall health of the global economy. It is important for policy makers and investors to understand these dynamics in order to make the right decisions in managing risk.