Glossary

What is Real interest rate?

Money & central banks

The interest rate minus inflation. It shows the true reward for saving or cost of borrowing.

Think of it like: Interest after the price-rise tax.
Real example: A 5% interest rate with 3% inflation is a real rate of about 2%.
Lesson: Real interest rates Practise it now: Carry Trade Caravan

Related words

All 189 words in the glossary