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DataBank

Metadata Glossary

CodeFR.INR.RINR
Indicator NameReal interest rate (%)
Long definitionAn interest rate is the amount charged, expressed as a percentage of the principal over a period of time, by the owners of certain kinds of financial assets for putting the financial assets at the disposal of another institutional unit. The real interest rate is the lending interest rate adjusted for inflation as measured by the GDP deflator. The terms and conditions attached to lending rates differ by country, however, limiting their comparability. This indicator is expressed as a percentage (a÷b)*100.
SourceInternational Financial Statistics database, International Monetary Fund (IMF); World Development Indicators, World Bank (WB)
TopicFinancial Sector: Interest rates
DatasetWDI
Unit of measure%
PeriodicityAnnual
Statistical concept and methodologyMethodology: Monetary and Financial statistics are compiled in accordance with international standards: Monetary and Financial Statistics Manual, 2018 or 2004 versions. Specific information on how countries compile their Monetary and Finance statistics can be found on the IMF website: https://dsbb.imf.org/ Statistical concept(s): The conceptual framework comes from the Monetary and Financial Statistic Manual which outlines the analytical presentation of monetary statistics, which provide critical inputs for monetary policy formulation and monitoring. The statistics covered in this Manual also support the assessment of financial system stability.
Development relevanceBoth banking and financial systems enhance growth, the main factor in poverty reduction. At low levels of economic development commercial banks tend to dominate the financial system, while at higher levels domestic stock markets tend to become more active and efficient. The size and mobility of international capital flows make it increasingly important to monitor the strength of financial systems. Robust financial systems can increase economic activity and welfare, but instability can disrupt financial activity and impose widespread costs on the economy.
License URLhttps://creativecommons.org/licenses/by/4.0/
License TypeCC BY-4.0
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