real rate vs actual rate

Both 'real rate' and 'actual rate' are correct phrases, but they are used in different contexts. 'Real rate' is commonly used in economics and finance to refer to the rate adjusted for inflation, while 'actual rate' is more general and can refer to the true or factual rate in any context.

Last updated: April 01, 2024 • 527 views

real rate

This phrase is correct and commonly used in economics and finance to refer to the rate adjusted for inflation.

The 'real rate' is the interest rate adjusted for inflation, providing a more accurate measure of the true cost of borrowing or investing.

Examples:

The real rate of return on the investment was 5% after adjusting for inflation.
Economists often analyze the real rate of interest to understand the true cost of borrowing.

Show examples from the web [+]

What is the minimum annual real rate of interest guaranteed by the BTPs Italia?
According to the specifications had to reach up 70 mph, but the real rate was 50 mph.
The total pension liabilities to be financed correspond to the sum, discounted at the real rate of 3 %, of the rights acquired at the date of the reform.
If the interest rate on long term bonds is 8 percent and the rate of inflation is 6 percent then the real rate of interest is 2 percent.
This raised the real rate of interest by about 4.5 percent. This means that despite the nominal rate of interest being low the real rate increased significantly.
The other factor was uncertainty about both expected future inflation and the expected real rate, which typically generates a risk premium.
But what matters is the real rate of interest, that is, the difference between the market rate and inflation.
The real rate of return of 2,5 % is applied to the value of the stock at current prices since the increase in current value of dwellings is already taken account of in the PIM.
Given that the renminbi's real and expected rates of return are higher than the real rate of return of other currencies, it has become a positive carry against foreign currencies, reinforcing the tendency to hold assets in renminbi and liabilities in foreign currencies.
Comparing trends in ITRs over time can be misleading, however, as the ITR significantly overestimates the real rate of tax on capital at times of booming stock exchanges and financial markets.
Some evidence of the overall increase in the real rate of interest that took place in 1994 is provided by yields on index-linked UK and Danish bonds, which exclude inflation premia.
It's actually running at real rate right now, one second per second, and in fact, Voyager 1 here is flying by Titan at I think it's 38,000 miles per hour.
The public's price awareness, however, is not as it should be, as the real rate of price increase in the eurozone, which is statistically verifiable and extremely low, does not relate to the inflation that people perceive.

Alternatives:

inflation-adjusted rate
adjusted rate

actual rate

This phrase is correct and can refer to the true or factual rate in any context.

'Actual rate' can refer to the true or factual rate without any adjustments or modifications.