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Real Interest Rate

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PPGPortal > Home > Concept Dictionary > R > Real Interest Rate
 

Real Interest Rate  

This is the interest rate adjusted for inflation. It indicates the real cost to the borrower, in terms of actual goods and services.

(Mcgeenet Glossary. www.mcgeenet.com/glossary.aspx )

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The real interest rate differs from nominal interest rates in that the real interest rate is adjusted for inflation.

     

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