Why are interest rates currently so high worldwide?

Interest rates are high worldwide because money is being borrowed more than usual, and lenders want to be paid back well.

Imagine you have a piggy bank where you save your allowance. If you want to use that money now, instead of saving it all for later, you might ask your mom or dad to lend you some. In return, they might say, "You can borrow the money, but you need to give me a little extra back, like a snack or a toy." That extra is like interest.

Now picture everyone in town doing that at once: kids borrowing from their parents, neighbors borrowing from each other, and even stores borrowing to buy more toys. So many people are borrowing that the lenders say, "We want a bigger snack or a better toy for lending our money now!" That’s why interest rates have gone up, like when your piggy bank says, "I want more candy for letting you borrow my coins!"

This is happening all over the world because lots of people and businesses are borrowing money to spend it now, and lenders are saying, "We need more for lending!"