Question

You expect inflation over the next year to be -2.5%. Actual inflation over the last year...

You expect inflation over the next year to be -2.5%. Actual inflation over the last year was 2.59%, and the current nominal interest rate is 6.3%. What is your expected real rate of interest (in %)? Round to 0.01%. E.g., if your answer is 3.145%, record it as 3.15.

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