nominal interest rate

  

Definition

Market interest rate unadjusted to reflect the erosion of the purchasing power due to inflation. See also real interest rate.

Use this term in a sentence

  • The nominal interest rate was used in the calculation as we wanted to simplify our equation to make it understandable.

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  • We would have to look at the nominal interest rate and see if it was actually going to have an effect on us.

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  • There may be a nominal interest rate on a product that you will have to factor in to what you spend on it.

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