Search: Real interest rate
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.
Search Results
The Effect of Credit Constraints on Housing Prices: (Further) Evidence from a Survey Experiment
31 Jan 2023
RDP
2023-01
For the mortgage rate cut experiment, analysing the demand curves does not show systematic differences between the average effect of interest rates and the effect on the marginal buyer. ... The response of WTP to a change in interest rate is little
https://www.rba.gov.au/publications/rdp/2023/2023-01/full.html
Aggregate Results
31 Jan 2023
RDP
2023-01
I compare the demand curves before and after the interest rate change using the same method. ... In this case, there is not much of a pattern across the demand curves with a higher interest rate compared to the demand curve with a lower interest rate
https://www.rba.gov.au/publications/rdp/2023/2023-01/aggregate-results.html
Introduction
31 Jan 2023
RDP
2023-01
Fuster and Zafar (2021) find a large average effect of easing collateral constraints on the stated WTP of survey respondents and a relatively small effect of changes in interest rates. ... For the mortgage rate cut experiment, analysing the demand curves
https://www.rba.gov.au/publications/rdp/2023/2023-01/introduction.html