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RBA Glossary definition for Real interest rate

Real interest rate – The real interest rate refers to the cost of borrowing money (i.e. the nominal interest rate) net of inflation. It takes account of the fact that part of the nominal interest that borrowers pay to lenders represents compensation for anticipated inflation. The remaining �real� component better reflects the economic cost of borrowing and the return to lending.

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.

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1 Jan 1992 RDP 9201
Philip Lowe
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

Introduction

1 Jan 1992 RDP 9201
Philip Lowe
Huizinga (1987) in a study of real exchange rates finds a degree of mean reversion in most bilateral real rates. ... The joint behaviour of the real exchange rate and unemployment rates is used, together with long-run restrictions on the effect of
https://www.rba.gov.au/publications/rdp/1992/9201/introduction.html

Real Exchange Rates and Productivity Growth

1 Jan 1992 RDP 9201
Philip Lowe
Here, bilateral real exchange rates are calculated using both the CPI and WPI. ... Graph 2: AUD/USD Real Fxchange Rate. Graph 3: AUD/YEN Real Exchange Rate.
https://www.rba.gov.au/publications/rdp/1992/9201/real-exchange-rates-and-productivity-growth.html

Real Exchange Rate Dynamics in Response to Real and Nominal Shocks: Theory and Identification

1 Jan 1992 RDP 9201
Philip Lowe
With an increase in money and with sticky prices, real balances increase and interest rates fall. ... During the exchange rate adjustment process, the depreciated real exchange rate and lower interest rates stimulate demand and reduce unemployment.
https://www.rba.gov.au/publications/rdp/1992/9201/real-exchange-rate-dynamics-in-response-to-real-and-nominal-shocks-theory-and-identification.html