The nominal interest rate is the return obtained in a financial operation that is capitalised in a simple way, i.e., considering only the principal capital. This term refers to the opportunity cost of not having the money, either for a customer for his bank deposit (profitability) or for the bank for a loan (interest). This opportunity cost is established on a percentage basis, which depends on the term and the predetermined principal. This loan will yield a profit on the initial amount with a simple capitalisation as it does not include financial charges and commissions.
NIR Nominal interest rate