Could the Iran war make mortgages, loans and credit more expensive? | Counting the Cost
Borrowing costs in major economies have hit their highest levels in nearly two decades. Investors have been shunning government debt and demanding higher returns. They worry that the Iran war could keep oil prices and inflation high.The International Monetary Fund warns that global debt could approach World War Two levels. At the centre of it all is the US, which largely sets borrowing costs worldwide.
That means higher mortgage repayments and car loans, more expensive credit, as well as rising business costs passed on to consumers. For developing nations borrowing in dollars, it puts even more pressure on stretched budgets.
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