The effective interest rate, effective annual interest rate, annual equivalent rate (AER) or simply effective rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual compound interest payable in arrears.

Interest rate

The representatives of executive heads favoured retention of the current 6.5 per cent interest rate.

Rate is the periodic interest rate.

Nominal interest rate

Market interest rate

Effective interest rate

Interest rate (percentage)

America s Interest Rate Puzzle

China s Interest Rate Challenge

That's the interest rate.

166 effective interest rate.

Investors are buying long term bonds at the current low interest rates because the interest rate on short term investments is now close to zero.

The Real Interest Rate Risk

That's the annual interest rate.

Rate Current Track 1

Rate Current Track 2

Rate Current Track 3

Rate Current Track 4

Rate Current Track 5

To define an interest rate fully, allowing comparisons with other interest rates, both the interest rate and the compounding frequency must be disclosed.

Give an interest rate of ten .

Current rate for 50 years

Budgetary growth (at current rate)

On the contrary, positive expected inflation would reduce the real (inflation adjusted) interest rate not a bad thing under current conditions.

But interest rate convergence caused economic divergence.

During the discussions in the Board, the participants apos representatives took the position that the current interest rate of 6.5 per cent was high, taking into account recent developments in the levels of interest rates and current market conditions.

This implies an interval of two months between interest rate moves instead of the three month interval that has become standard ECB practice in the current interest rate cycle. The next rate hike in the normalization process is expected in October, two months after the expected August move.

The second adverse effect of deflation is to raise the real interest rate, that is, the difference between the nominal interest rate and the rate of inflation.

But when prices are falling, the real interest rate exceeds the nominal rate.

Since China s current benchmark interest rate is higher than the comparable rate in the United States, individuals and institutions have an incentive to keep renminbi as assets and dollars as debt.

An increase or decrease in the current interest rate of 6.5 per cent would trigger a decrease or increase in the required rate of contributions by both participants and member organizations.

The very low interest rate on long term United States Treasury bonds is a clear example of the current mispricing of financial assets.

Even US Federal Reserve Chairman Alan Greenspan ordinarily the Oracle of Delphi on interest rate matters, has declared the current situation a conundrum.

But financial decentralization extends beyond interest rate liberalization.

C. Interest rate applicable to lump sum commutations

Let's say that the interest rate is 25 .

Her interest rate has of course gone up.

Since the interest rate set by the ECB is now less than 1 , there is little difference between its current monetary policy and what the Bank of Spain would do if it could set its own interest rate. But when the euro zone starts to recover, the ECB might choose to raise the interest rate before a higher rate would be appropriate for Spain, which could exacerbate Spanish unemployment.

According to the followers of Knut Wicksell, the central bank must keep the market rate of interest near the natural rate of interest.

The current small difference between the real interest rate on such bonds (2.1 for 30 year bonds) and the nominal interest rate on conventional 30 year Treasury bonds (now 4.6 ) implies that the market expects only about 2.5 inflation over the next three decades.

At present, the interest rate is less than 0.5 .

Emerging market interest rate spreads now are abnormally low.

Italy, however, chose to squander that interest rate advantage.

I'm going to charge the interest rate on that.