Definition
The nominal interest rate establishes the amount that will be added to the principal as a cost or return on any form of debt or savings. It is commonly expressed as a percentage, refers to a specific period of time, and is applied to the amount loaned or deposited.
Further information
The real interest rate, in turn, is the result of subtracting the inflation rate from the nominal interest rate.
Related concepts
- Annual Percentage Rate of Charge (APRC)
- Interest rates of Monetary Financial Institutions
- Reference interest rate
- Fixed interest rate
- Variable interest rate
Links to data tables
Update date: January 2025
