RDP 9208: Credit Supply and Demand and the Australian Economy Data Appendix

Lending to Business – RBA Bulletin, Table D.4, Credit by all financial intermediaries – other (mainly business). This data is adjusted for seasonality and breaks in the series resulting from changes in reporting forms, conversion of building societies to banks and the like.

Total AFI Credit – RBA Bulletin, Table D.4 Credit by all financial intermediaries – total (seasonally adjusted).

Broad Money (seasonally adjusted) – RBA Bulletin, Table D.1.

Bank Capital – All banks' assets less all banks' liabilities, RBA Bulletin Table B1.

The Loan Rate – RBA Bulletin, Table F.3, Overdrafts $100,000 and over (maximum).

Weighted Cost of Funds – Calculated using RBA Bulletin data and internal RBA data. See Lowe and Rohling (1992).

The Mortgage Rate – RBA Bulletin, Table F.3, Housing loans to individuals for owner-occupation.

The Rediscount Rate for Treasury Notes – RBA Bulletin, Table F.1, Rediscount rate.

The Certificate of Deposit Rate – RBA Bulletin, Table F.3, Weighted average issue yield.

The Treasury Note Rate – RBA Bulletin, Table F.1, Issue yield on 13 week Treasury notes.

The Bill Rate – RBA Bulletin, Table F.1, Bank accepted bills, 90 days.

All Ordinaries Share Price Index – RBA Bulletin, Table F.5.

Banks Share Prices – Banks/Finance Share Price Index – RBA Bulletin, Table F.5.

Relative Bank Share Price Variance – The ratio of the standard deviation (taken over the past two years observations) of the Banks/Finance Share Price Index and the standard deviation of the All Ordinaries Share Price Index.

Corporate Net Worth – RBA Bulletin, Table F.5, Market capitalisation of listed equities at end of month.

The earnings/price ratio – Monthly Index Analysis, Australian Stock Exchange. The ratio is adjusted by expected output growth to obtain a measure of the true cost of equity finance. Expected output growth is proxied by the rate predicted by a thirteenth-order autoregressive model. See Richards (1991).

Expected Investment – Confederation of Australian Industry and Westpac Banking Corporation Survey of Industrial Trends. Net balance of survey respondents expecting to increase capital expenditure (plant and machinery and buildings) in the next 12 months. Quarterly data interpolated to monthly data by fitting a straight line between each quarterly observation.

Inflation – expected inflation based on the Total Consumer Price Index (monthly figures obtained by interpolating quarterly data, assuming the growth rate of prices during each quarter is constant). Expected inflation is calculated as the rate predicted by an eighth order autoregressive model.

Activity – Non-Farm GDP (Seasonally Adjusted) – RBA Bulletin, Table G.5.

Nominal Investment – Business Fixed Investment (Seasonally Adjusted) – RBA Bulletin, Table G.5.

Monthly figures for activity were obtained by interpolating quarterly data, assuming that growth is constant throughout each quarter, and constraining the sum of the three months' activity (investment) in each quarter to be equal to the total quarter's activity (investment).