When a central bank raises , the effect reaches households slowly.
on fixed-rate loans feel nothing until their term ends.
Those on variable rates see their monthly payment rise within weeks.
In Vietnam, most move to a floating rate after the first year.
A family that borrowed two billion dong may pay several million more each month.
Households respond by cutting other spending, usually in that order: leisure, then education, then food.
That is exactly how the policy is supposed to work.
Slower demand eventually reduces .
The cost, however, falls unevenly.
Young buyers with recent loans carry most of the .
Older owners with no debt may even gain from higher savings rates.
Economists argue about the , which is usually twelve to eighteen months.
By the time falls, the damage to borrowers is already done.