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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Real interest rate  

Definition 1.

e rate of interest excluding the effect of expected inflation; that is, the rate that is earned in terms of constant-purchasing-power dollars. Interest rate expressed in terms of real goods, i.e. nominal interest rate adjusted for expected inflation.
 

Definition 2.

The current interest rate minus the current inflation rate.
 

Definition 3.

The amount by which the nominal interest rate is higher than the inflation rate.
 
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