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DISCOUNT RATE

Statistics Directorate    
French Equivalent: Taux d'actualisation

Definition:
The discount rate is an interest rate used to convert a future income stream to its present value.

Context:
The discount rate is the interest charged by a central bank on loans to domestic financial institutions.

The OECD Economic Outlook: Sources and Methods. Available at http://www.oecd.org/eco/outlook/sources-and-methods.htm

The
annual percentage by which future income is discounted to give an equivalent value in the present period.

United Nations, European Commission, International Monetary Fund, Organisation for Economic Co-operation and Development, World Bank , 2005, Handbook of National Accounting: Integrated Environmental and Economic Accounting 2003, Studies in Methods, Series F, No.61, Rev.1, Glossary, United Nations, New York, para. 7.189
.

Source Publication:
Measuring Capital: OECD Manual, Annex 1 Glossary of Technical Terms Used in the Manual, OECD, 2001.

Hyperlink:
http://www.oecd.org/dataoecd/61/57/1876369.pdf

Statistical Theme: National accounts

Created on Tuesday, September 25, 2001

Last updated on Friday, March 28, 2014