Global interest rates are rising and all indications are that this trend is here to stay. The article analyses what it calls the economic "new world," where states will have to adapt to a higher interest rate environment.
Higher inflation is pointed out as one of the main reasons for these increases. This inflationary pressure has forced central banks to intervene, raising benchmark rates to control prices.
The need for many countries to issue debt also contributes to the higher interest rate scenario. With greater demand for financing from governments, borrowing costs tend to increase.
The prospects for accelerated economic growth are another factor mentioned. In a context of economic recovery, demand for credit increases, which also pushes interest rates upward.
