The Organisation for Economic Co-operation and Development (OECD) has issued a warning regarding the potential consequences of rising interest rates on global debt. The organization suggests that higher borrowing costs could put significant pressure on countries and corporations already burdened with substantial debt.

The OECD’s analysis points to a growing vulnerability in the global financial system as interest rates climb in response to inflationary pressures. Many countries and businesses took on significant debt during the period of low interest rates, and the reversal of this trend could lead to difficulties in servicing these obligations.

The report emphasizes the need for careful monitoring of debt levels and proactive measures to mitigate the risks associated with rising interest rates. The OECD suggests that governments and central banks should work together to ensure financial stability and avoid a potential debt crisis.

The warning from the OECD adds to the growing concerns about the global economic outlook, with many analysts predicting a slowdown in growth as central banks tighten monetary policy to combat inflation. The impact of rising interest rates on global debt will be a key factor to watch in the coming months.