Disinflation lifts real cost of borrowing despite lower lending rates

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• Truth 10 hours ago

  What's your point exactly? High inflation erodes debt so the 30% against the 23% inflation was better than the 15% interest against 5% inflation? If you borrow 500k for 5 yrs at the above rates, you'll pay 16k for the 30% and ...
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  What's your point exactly? High inflation erodes debt so the 30% against the 23% inflation was better than the 15% interest against 5% inflation? If you borrow 500k for 5 yrs at the above rates, you'll pay 16k for the 30% and 12k for the 15%. The difference is 4k. Total interest on the 1st is almost 500k while the 2nd is 200k. So per your logic, because inflation is 23%, the value of the debt goes down. What happens to your savings and disposable income?

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