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MTX2000

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18/07/21

19:09

Post #: 54586901
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Originally posted by Infose: ↑

"With property prices through the roof and many people leveraged to very high levels what is likely to occur if interest rates increase?"

If interest rates do increase in an attempt to curb inflation then that increase will be temporary. Otherwise, if they increase in response to inflation then presumably also the same would be happening to wages. Besides that inflation is generally speaking good for the borrower and bad for the lender.

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"Besides that inflation is generally speaking good for the borrower and bad for the lender."

Is that because the real value of existing loans is reduced?
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