As the conflict in the Middle East drives up energy costs and reignites inflation, interest rates are rising again across major economies. With global debt now exceeding $365 trillion, higher borrowing costs are putting renewed pressure on households, businesses and governments.

The US Federal Reserve and European Central Bank have raised rates, while China has kept its benchmark lending rate at a record low. But policymakers remain divided over how far to go, balancing the need to contain inflation against the risk of weakening growth. Is this a short, sharp response to an energy shock, or the beginning of a prolonged squeeze on the global economy?

Joining Juliet Mann this week are Vicky Pryce, Chief Economic Adviser at CEBR, Gerard Lyons, Economist and James Knightly, Chief International Economist, ING Financial Markets LLC.

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