nominal rate
[/ˈnɒmɪnəl reɪt/]
nounpl: nominal rates
taxa nominal
1. The stated or face value interest rate on a loan or investment, without accounting for inflation or compounding effects
The bank offers a nominal rate of 5% per annum on savings accounts.
O banco oferece uma taxa nominal de 5% ao ano em contas poupança.
2. In finance, the interest rate quoted without adjustment for the effects of inflation
The nominal rate does not reflect the true purchasing power return.
A taxa nominal não reflete o verdadeiro retorno do poder de compra.
3. The annual percentage rate (APR) stated before considering fees or compounding frequency
Compare the nominal rate with the effective rate to understand the true cost of borrowing.
Compare a taxa nominal com a taxa efetiva para entender o verdadeiro custo do empréstimo.
The distinction between nominal and real rates is crucial in Brazilian and international finance, especially during periods of high inflation. In Brazil, financial institutions are required by law to clearly disclose both nominal and effective rates to consumers. This term is fundamental to understanding loan agreements, savings products, and investment returns across all Portuguese-speaking and English-speaking financial markets.
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