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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.
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Appendix D: Glossary and Data
31 Dec 2005
RDP
2005-11
All levels variables are expressed in logs except: interest rates, bond market inflation expectations and the tariff rate series trf (which are expressed as decimals); together with the Southern Oscillation Index. ... Source: Export price indices and
https://www.rba.gov.au/publications/rdp/2005/2005-11/appendix-d.html
Remaining Components of the Model
31 Dec 2005
RDP
2005-11
interest differential between Australia and the rest of the world (where real interest rates in both regions are assumed to revert to neutral). ... 3.3 Optimal Policy. Short-term model-based forecasts often assume that the nominal interest rate is held
https://www.rba.gov.au/publications/rdp/2005/2005-11/remaining-components-model.html
Introduction and Overview
31 Dec 2005
RDP
2005-11
First, it remains non-monetary in nature, for the same reasons as discussed in Beechey et al (2000); as such, a short-term real interest rate continues to be used to ... Moreover, variables such as the real interest rate, previously computed as the
https://www.rba.gov.au/publications/rdp/2005/2005-11/introduction.html
Simulations
31 Dec 2005
RDP
2005-11
Finally, higher domestic real interest rates result in ongoing appreciation of the nominal exchange rate relative to baseline – initially through their direct impact on the real exchange rate, and subsequently reflecting ... the nominal exchange rate
https://www.rba.gov.au/publications/rdp/2005/2005-11/simulations.html