How much higher will interest rates go? The main issue in the financial markets lately has been the rise in interest rates. The two main culprits are higher oil prices and prices of petroleum products, as well as better-than-expected growth figures. The combination of these two factors is driving up inflation expectations, while inflation remains above the Fed’s and the ECB’s targets. The key question is at what interest rate level inflation will fall to or below 2%. In this regard, several factors must be taken into account.