The world’s interest bill is $13trn—and rising

2010s, in which interest rates hardly budged, are putting central-bank officials to work. Indeed, policymakers have rarely been busier. In the first quarter of 2021, policy rates in a sample of 58 rich and emerging economies languished at an average of 2.6%. By the final quarter of 2022, this figure had jumped to 7.1%. Meanwhile, total debt in these countries stands at $298trn, or 342% of their combined , up from $255trn, or 320% of , before the covid-19 pandemic.The more indebted the world becomes, the more sensitive it is to interest-rate rises. To assess the effect of borrowing and higher rates, has estimated the interest bill for companies, households and governments across 58 countries. Together these economies account for more than 90% of global . In their interest bill stood at a $10.4trn, or 12% of combined . By 2022 it had reached a whopping $13trn, or 14.5% of .