Raunvextir

Raunvextir, or real interest rate, is the interest rate on a loan or investment after adjusting for inflation. It represents the true purchasing-power return or cost of borrowing, separate from changes in the price level. In practice, it is often approximated as the nominal interest rate minus expected inflation, but the exact measure can be calculated using the Fisher equation: real rate ≈ (1 + nominal rate) / (1 + expected inflation) − 1.

There are two common concepts: the ex-ante (or expected) real interest rate, which uses forecasts of inflation, and the ex-post (or realized) real rate, which uses the actual inflation that occurs during the period. The ex-ante rate influences current saving and investment decisions, while the ex-post rate reflects the actual outcome for savers and borrowers.

Raunvextir are influenced by several factors. Inflation expectations play a central role, as higher expected inflation tends to lower the real rate for a given nominal rate. The risk and liquidity characteristics of an asset, the term structure of interest rates, and monetary policy expectations also affect real rates. When inflation is volatile or uncertain, real rates can swing even if nominal rates move slowly.

In macroeconomic analysis, real interest rates help explain levels of saving, investment, and economic growth. Persistent low or negative real rates can stimulate borrowing and spending, while high real rates tend to dampen investment. Real rates are commonly reported alongside nominal rates and measures of inflation, and they depend on the inflation measure used.