Real Estate Finance Partner Juliet Baboolal shared her thoughts on the recent news that inflation is slowing.
In the article by Market Financial Solutions (MFS), Juliet said “Slowing inflation can impact real estate from multiple angles. The results could be varied, and interpreted differently when explored via local market conditions, government policies, and other macroeconomic factors.”
“Admittedly, the slowing down on inflation can have a positive impact on credit risk for banks… However, with slower inflation, borrowers may have better debt-servicing capacity thus reducing the risk of loan defaults and improving the overall credit quality of the banks’ loan portfolios.”
You can read the full article online here.