Tingkat Bunga Riil: Example: An investor is earning a 6.5% interest rate locked for one year and the inflation rate for that year is 2%, the Real interest rate is 4.5%. Calculation: nominal interest rate - inflation rate = Real interest rate (6.5% - 2% = + 4.5%). In this case the investor is making some profit, 4.5%. An investor is earning a 3.2% interest rate locked for one year and the inflation rate for that year is 3.5%, the Real interest rate is minus 0.3%. Calculation: nominal interest rate - inflation rate = Real interest rate (3.2% - 3.5% = - 0.3%). In this case the investor is loosing 0.3%. When Real Interest rate is negative value, inflation could accelerate and get out of control. This seems to be world wide problem. See below Inflation rate, Interest rate and Real Interest rate of some countries
Inflation rate, Interest rate and Real Interest rate of some countries: end of Q3 2013 - June
Inflation rate, Interest rate and Real Interest rate of some countries: end of Q2 2013 - June
Inflation rate, Interest rate and Real Interest rate of some countries: end of Q1 2013 - March
Inflation rate, Interest rate and Real Interest rate of some countries: end of Q4 2012 - December
Inflation rate, Interest rate and Real Interest rate of some countries: end of Q3 2012 - September
Inflation rate, Interest rate and Real Interest rate of some countries: end of Q2 2012 - June
Inflation rate, Interest rate and Real Interest rate of some countries: end of Q1 2012 - March
Inflation rate, Interest rate and Real Interest rate of some countries: end of Q4 2011 - December
Inflation rate, Interest rate and Real Interest rate of some countries: end of Q3 2011 - September
Inflation rate, Interest rate and Real Interest rate of some countries: end of Q2 2011 - June
Inflation rate, Interest rate and Real Interest rate of some countries: end of Q1 2011 - March
Euro-Zone is composed of 17 countries: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. They share the same monetary policy and currency, Euro €. Euro-Zone countries are part of European Union. European Union is composed of 27 countries: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Republic of Ireland, Romania, Slovakia, Slovenia, Spain, Sweden, and United Kingdom. They share the same economic and political views. European Union citizens can move freely between member states to live, work, study or retire in another European Union country. |
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