Search: Nominal interest rate
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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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Box B: Measurement of Housing Arrears
10 Sep 2009
FSR
– September 2009
Sharp changes in interest rates can also distort reported arrears rates. ... When variable mortgage interest rates fall, the required repayment also declines.
https://www.rba.gov.au/publications/fsr/2009/sep/box-b.html
Household and Business Balance Sheets
10 Sep 2012
FSR
– September 2012
1990s and 2000s, because that earlier period was one of adjustment to the structural decrease in nominal interest rates and liberalisation of the banking system. ... Reflecting businesses' low leverage, solid profitability and below-average interest rates
https://www.rba.gov.au/publications/fsr/2012/sep/house-bus-bal-sheet.html
The Global Financial Environment
21 Apr 2017
FSR
– April 2017
Real estate markets in many advanced economies have also been buoyed by the prolonged period of low global interest rates. ... In contrast, a scenario where interest rates rose, but commodity prices remained low, would be particularly challenging for
https://www.rba.gov.au/publications/fsr/2017/apr/global-fin-env.html
The Global Financial Environment
10 Mar 2015
FSR
– March 2015
For some banks, flatter yield curves associated with very low interest rates have compressed net interest margins. ... The RBNZ has attributed this recent increase to rising household incomes, falling interest rates on fixed-rate mortgages, strong
https://www.rba.gov.au/publications/fsr/2015/mar/global-fin-env.html
The Global Financial Environment
10 Sep 2013
FSR
– September 2013
Earlier this year there had been increasing concern among some policymakers about potentially imprudent risk-taking as investors ‘reached for yield’ in a low interest rate environment. ... However, both activity and real prices remain well below
https://www.rba.gov.au/publications/fsr/2013/sep/global-fin-env.html
Business and Household Finances
10 Sep 2013
FSR
– September 2013
around 21 months of total scheduled repayments at current interest rates (Graph 3.12). ... An increase in housing market activity more generally is not surprising given reductions in interest rates.
https://www.rba.gov.au/publications/fsr/2013/sep/bus-house-fin.html
The Global Financial Environment
10 Sep 2012
FSR
– September 2012
Property prices have also risen significantly in a few economies, especially where exchange rate regimes have limited the scope to raise interest rates, prompting authorities to introduce a range of other ... The larger allowable discount on Chinese banks
https://www.rba.gov.au/publications/fsr/2012/sep/global-fin-env.html
The Global Financial Environment
10 Mar 2009
FSR
– March 2009
While central banks have lowered policy interest rates significantly, a widening in risk spreads has limited the extent to which reductions have been passed onto many lending rates. ... Though the initial rise in US housing loan arrears mainly reflected
https://www.rba.gov.au/publications/fsr/2009/mar/global-fin-env.html
The Structure of the Australian Financial System
10 Mar 2006
FSR
– March 2006
The decline in inflation in the early 1990s, and the lower interest rates that followed, substantially boosted the demand for housing finance. ... CMTs rose to prominence in the mid 1990s by offering significantly higher interest rates and greater
https://www.rba.gov.au/publications/fsr/2006/mar/struct-aus-fin-sys.html
The Macroeconomic and Financial Environment
10 Mar 2006
FSR
– March 2006
On the demand side, the lower nominal interest rates associated with lower inflation have allowed households to take on larger debts. ... The effect of interest rate increases in recent years has also been partly offset by a contraction in lending margins
https://www.rba.gov.au/publications/fsr/2006/mar/mac-fin-env.html