If the economy experiences an unexpectedly low rate of inflation, the group that would tend to benefit is nominal interest rate
In finance and economics, the nominal interest rate or nominal rate of interest refers to one of two things: the rate of interest before inflation adjustment, or the rate of interest "as stated" without adjustment for the full effect of compounding.
The relationship between nominal and real interest rates can be approximated as nominal rate = real interest rate + inflation rate or nominal rate - inflation rate = real interest rate.
Nominal interest rates can be influenced by a variety of factors, including money demand and supply, federal government action, central bank monetary policy, and many more. The short-term nominal interest rate is used by central banks as a monetary policy instrument.
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