Multiple economic factors influence interest rates. Three types of interest rates, including real, nominal, and effective affect consumers' borrowing and investment choices. The nominal interest ...

However, all bonds are not the same. Bonds pay different interest rates and carry varying degrees of risk. Understanding the relationship between a nominal and a real interest rate is essential to ...

Given all this fragility, recessionary or inflationary shocks — or even both together — are conceivable. Yields on the most ...

A bond's nominal value and market value can be the same at issuance, but will separate as market dynamics evolve. Interest rates are the primary influencer of bond market values. If prevailing ...

The real interest rate accounts for the impact of inflation on the cost of loans and returns on savings. It is calculated by subtracting the inflation rate from the nominal interest rate.

There is certainly scope for further cuts, but it is not a case of ‘what goes up must come down’. The Bank of England has ...

Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate This paper examines the distribution of output around capacity when money ...

Since the US capital market is the world’s largest and most liquid, this could lead to higher interest rates for Canadian borrowers. This would cause the Canadian neutral rate to rise. Low confidence ...