Nominal Interest Rates

Nominal Interest Rates
   The interest rate expressed in money terms, with no allowance made for the effects of inflation. In contrast with real interest rates, which are nominal rates minus inflation.

Financial and business terms. 2012.

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  • Nominal Interest Rate — Nominal interest rates refer to referes to the rate of interest prior to taking inflation into account. Depending on its application, an inflation and risk premium must be added to the real interest rate in order to obtain the nominal rate.… …   Investment dictionary

  • Nominal interest rate — In finance and economics nominal interest rate or nominal rate of interest refers to the rate of interest before adjustment for inflation (in contrast with the real interest rate); or, for interest rates as stated without adjustment for the full… …   Wikipedia

  • Real Interest Rates —    The actual rate of return calculated by deducting the inflation rate from the current interest rate. Also known as real yield.    ► See also Nominal Interest Rates …   Financial and business terms

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  • Interest — For other uses, see Interest (disambiguation). Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money,[1] or money earned… …   Wikipedia

  • interest-rate futures — A form of financial futures that enables investors, portfolio managers, borrowers, etc. , to obtain protection against future movements in interest rates. Interest rate futures also enable dealers to speculate on these movements. In the UK,… …   Big dictionary of business and management

  • Real interest rate — The real interest rate is approximately the nominal interest rate minus the inflation rate (see Fisher equation and below for exact equation). Since the inflation rate over the course of a loan is not known initially, volatility in inflation… …   Wikipedia

  • Real versus nominal value (economics) — Economics …   Wikipedia

  • Nominal — In name only. Differences in compounding cause the nominal rate to differ from the effective interest rate. Inflation causes the purchasing power of money to differ from one time to another. The New York Times Financial Glossary * * * nominal… …   Financial and business terms

  • nominal — In name only. Differences in compounding cause the nominal rate to differ from the effective interest rate. inflation causes the purchasing power of money to differ from one time to another. Bloomberg Financial Dictionary * * * nominal nom‧i‧nal… …   Financial and business terms

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