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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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The Consequences of Low Interest Rates for the Australian Banking Sector

21 Dec 2022 RDP 2022-08
Anthony Brassil
In jurisdictions with a negative policy rate, retail deposit interest rates remained close to zero (albeit negative). ... rate. So cash rate reductions remain an effective policy tool during large downturns and at low interest rates.
https://www.rba.gov.au/publications/rdp/2022/2022-08/full.html

The Low Interest Rate Environment

21 Dec 2022 RDP 2022-08
Anthony Brassil
Download the Paper 1.6. MB. Before exploring the consequences of low interest rates, a brief digression to frame what is typically meant by the ‘low interest rate environment’. ... Rather than referring to rates that are temporarily low, the low
https://www.rba.gov.au/publications/rdp/2022/2022-08/the-low-interest-rate-environment.html