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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
Andrew Stone, Troy Wheatley and Louise Wilkinson
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. ... Foreign variables. gap. US. US real
https://www.rba.gov.au/publications/rdp/2005/2005-11/appendix-d.html

Introduction and Overview

31 Dec 2005 RDP 2005-11
Andrew Stone, Troy Wheatley and Louise Wilkinson
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

Remaining Components of the Model

31 Dec 2005 RDP 2005-11
Andrew Stone, Troy Wheatley and Louise Wilkinson
interest differential between Australia and the rest of the world (where real interest rates in both regions are assumed to revert to neutral). ... Optimal policy based on such objectives would typically be implemented by solving for the policy interest
https://www.rba.gov.au/publications/rdp/2005/2005-11/remaining-components-model.html

Simulations

31 Dec 2005 RDP 2005-11
Andrew Stone, Troy Wheatley and Louise Wilkinson
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 ... A one-off 1 percentage
https://www.rba.gov.au/publications/rdp/2005/2005-11/simulations.html

References

31 Dec 2005 RDP 2005-11
Andrew Stone, Troy Wheatley and Louise Wilkinson
Dwyer J, C Kent and A Pease (1993), ‘Exchange rate pass-through: the different responses of importers and exporters’, Reserve Bank of Australia Research Discussion Paper No 9304. ... Gruen D and J Wilkinson (1991), ‘Australia's real exchange rate
https://www.rba.gov.au/publications/rdp/2005/2005-11/references.html