Interest rates represent a key instrument of monetary policy used by central banks to stabilize economic activity, particularly during periods of financial and geopolitical crises. In the context of global disruptions, such as the Russia–Ukraine war and ongoing conflicts in the Middle East, significant inflationary pressures, supply chain disruptions, and increased uncertainty in financial markets have emerged. In such an environment, changes in interest rates affect the cost of financing, investment behavior, the level of personal consumption, inflation dynamics, and overall economic activity. Lowering policy interest rates is used as an expansionary measure to increase liquidity and mitigate economic downturns, while raising interest rates serves as a key mechanism in combating inflation and maintaining macroeconomic stability. The paper analyzes the transmission mechanisms of monetary policy through interest rates, as well as their effectiveness in the context of modern crises, with a particular focus on the impact of current geopolitical tensions. Special attention is given to the responses of leading central banks, such as the Federal Reserve System and the European Central Bank, in balancing inflation control and economic growth. The aim of the paper is to highlight the importance of effective interest rate management as a key factor in stabilizing the economy and preserving the resilience of the financial system in contemporary crisis conditions.

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