real interest rate
US /ˌriːəl ˈɪn.tər.ɪst ˌreɪt/
UK /ˌriːəl ˈɪn.tər.ɪst ˌreɪt/
1.
the rate of interest an investor expects to receive after allowing for inflation
:
•
The real interest rate is crucial for understanding the true cost of borrowing.
•
If inflation is higher than the nominal interest rate, the real interest rate can be negative.