Rate cut expectations keep getting pushed back, but maybe this is actually a cure for household debt
Early in the year, the expected rate cut went from Q2 all the way out to Q4. People with real estate loans are sighing over the interest burden, but from another angle, it means the economy isn't overheating... it's a delicate situation. I've got a variable-rate loan, so I guess I just have to hold out for the long haul. What do you all think?
3 answers
Yeah, in the end, holding out is the answer. I'm on a variable rate too, and a 0.5%p difference makes the monthly interest swing by more than 200,000 won, so I'm just enduring itㅜ
Well, isn't that a bit optimistic? The delay in rate cuts is because inflation hasn't been brought under control, not because of household debt. If anything, downside risks are bigger, so I'm not sure it's right to see it as an overheating economy.
Interest burden is a problem, but the bigger issue is that real income isn't rising. Even if rates are cut, people who can't repay loans are still the same. The answer is just to shut up and pay.