Search: Nominal interest rate
RBA Glossary definition for Nominal interest rate
Nominal interest rate – The nominal interest rate refers to the cost of borrowing money before adjustment for inflation i.e. it includes compensation for the expected erosion of the value of the borrowed funds due to inflation. It is the cost visible to the borrower, and is composed of the real interest rate plus inflation.
RBA Glossary definition for interest rate
interest rate – The term used to describe the cost of borrowing money or the return to the owner of the funds which are invested or lent out. It is usually expressed as a percent per annum of the amount of money borrowed, lent or invested.
Search Results
Data Appendix
1 Sep 1991
RDP
9108
Real interest rates are calculated by adjusting annualised nominal interest rates for annualised inflationary expectations. ... Short Nominal Interest Rates. US, UK, Japan and Germany – 3 month Eurocurrency rates taken at last trading day of month from
https://www.rba.gov.au/publications/rdp/1991/9108/data-appendix.html
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Macrofinancial Stress Testing on Australian Banks
13 Sep 2023
RDP
PDF
1940KB
It also enables the scenario to incorporate changes in interest rates or fiscal policy, if desired. ... 13 To simplify the modelling, we assume interest rates on business loans do not change.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-03.pdf
Estimating the Effects of Monetary Policy in Australia Using Sign-restricted Structural Vector Autoregressions
29 Dec 2022
RDP
PDF
1886KB
the predicted short rate from a model of the term structure of interest rates that does not feature a lower bound. ... combination of expansionary demand and supply shocks can result in the nominal interest rate.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-09.pdf
Appendix B: Data
31 Dec 2001
RDP
2001-05
To calculate real interest rates, we use quarterly nominal interest rates and quarterly consumer price indices. ... The bilateral series used in estimation, for both short and long rates, is the natural logarithm of the standard deviation of the real
https://www.rba.gov.au/publications/rdp/2001/2001-05/appendix-b.html
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The Main Questions
1 Dec 1988
RDP
8812
Under some theories, nominal interest rates can only move out of line with those overseas when there is the expectation of an exchange rate change. ... This suggests that the synchronisation of domestic and foreign nominal interest rates has not
https://www.rba.gov.au/publications/rdp/1988/8812/main-questions.html
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Results
31 Dec 2005
RDP
2005-04
For the (hypothetical) second, the ZLB is not a constraint, so that a negative nominal interest rate setting can (in some unspecified way) be achieved, if desired. ... Once again, it is interesting to consider the sensitivity of these results to changes
https://www.rba.gov.au/publications/rdp/2005/2005-04/results.html
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Introduction
1 Nov 1990
RDP
9009
For example, if nominal interest rates increase because inflation is expected to increase, the exchange rate will probably depreciate, contrary to the predictions of the portfolio balance model. ... Using this model, we can then examine the effects of
https://www.rba.gov.au/publications/rdp/1990/9009/introduction.html
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Results
1 Jan 1992
RDP
9201
Macfarlane and Tease (1989) argue that for some of the floating period the relationship between the exchange rate and interest rates was dominated by a policy reaction function from the exchange ... rate to interest rates.
https://www.rba.gov.au/publications/rdp/1992/9201/results.html
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Monetary Policy, Equity Markets and the Information Effect
24 Oct 2021
RDP
PDF
1573KB
The information effect of monetary policy would occur if changes to the nominal interest rate were. ... ambiguous regardless of the reason for the change in the nominal interest rate.
https://www.rba.gov.au/publications/rdp/2021/pdf/rdp2021-04.pdf
MONEY DEM.RD, OWN INTEREST RATES MW DEREGULATION Adrian Blundell_Wignall* ...
17 Oct 2014
RDP
PDF
1096KB
Nominal. interest rates will rise and the rate of inflation will accelerate. ... reducing inflation and inflation expectations, there would be an incipient. decline in nominal interest rates.
https://www.rba.gov.au/publications/rdp/1987/pdf/rdp8703.pdf