how do you find the real interest rate 
the real interest rate is essentially the nominal interest rate minus the inflation rate so if the nominal rate is 6 and inflation is 4 the real interest rate is 2 this interest rate can be calculated using currently available information but some businesses will plan for future interest rate and inflation environments so they know how to adjust their pricing in the event of an increase or decrease in inflation the bottom linethe fisher effect is a theory describing the relationship between both real and nominal interest rates and inflation the theory states that the nominal rate will adjust to reflect the changes in the inflation rate in order for products and lending avenues to remain competitive it is a theory that is sometimes applied to currency pairs in order to profit from price discrepancies through a trading style called arbitrage 