- 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. 2012.
Real Interest Rates
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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 interest rate — The actual interest rate less the current rate of inflation. For example, if a building society is paying 5% interest and the rate of inflation is 3%, the real growth of a deposit held for a year in the building society is 2% this is the real… … Big dictionary of business and management
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
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Real Yield — ► See Real Interest Rates … Financial and business terms
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