Reálkamatláb

Reálkamatláb refers to the real interest rate, which is the nominal interest rate adjusted for inflation. It represents the actual purchasing power of the returns on an investment or loan. The concept is crucial for understanding the true cost of borrowing or the true return on savings.

To calculate the reálkamatláb, one subtracts the inflation rate from the nominal interest rate. For instance, if a savings account offers a nominal interest rate of 5% and the annual inflation rate is 3%, the reálkamatláb is 2%. This means that while the money in the account has increased by 5%, its purchasing power has only increased by 2% due to the rising prices of goods and services.

Conversely, if the inflation rate is higher than the nominal interest rate, the reálkamatláb will be negative. A negative real interest rate implies that the value of money is decreasing over time, even with interest being earned. This can be a disincentive for savers, as their money is losing purchasing power. For borrowers, a negative real interest rate means the debt effectively becomes cheaper in real terms over time.

The reálkamatláb is a key indicator for economic policy decisions, influencing central bank interest rate setting and government fiscal policies. It provides a more accurate picture of economic conditions than the nominal interest rate alone.