(Answered) ∼∼?∼ if the actual inflation rate is 1.9% ? ◻0.15%3.65%1.75%-0.15%∼∼?∼ if the actual inflation rate…

➤ Why does a positive inflation surprise help borrowers but hurt lenders?
A positive surprise reduces the purchasing power of future nominal payments. Borrowers repay debt with money worth less in real terms, so their real burden falls. Lenders receive lower real returns. The effect is strongest for long-term, fixed-rate loans and bonds until interest rates reprice.