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.
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The Australian Financial System
7 Oct 2022
FSR
– October 2022
At the same time, higher interest rates reduce the present value of liabilities to the extent that nominal interest rates increase due to higher real interest rates (insurers might adjust assumptions ... For more information on the effects of rising
https://www.rba.gov.au/publications/fsr/2022/oct/australian-financial-system.html
Contents: Financial Stability Review – October 2023
6 Oct 2023
FSR
This issue of our Financial Stability Review assesses the current condition of the financial system and potential risks to financial stability.
https://www.rba.gov.au/publications/fsr/2023/oct/contents.html
The Global Financial Environment
8 Oct 2021
FSR
– October 2021
Sustained low interest rates will, however, continue to provide an incentive to borrow for housing. ... The RBNZ will also start a consultation shortly on implementing DTI restrictions and interest rate floors.
https://www.rba.gov.au/publications/fsr/2021/oct/global-financial-environment.html
The Global Financial Environment
20 Oct 2018
FSR
– October 2018
Pockets of significant vulnerability may have been building unobserved in the low interest rate, low volatility environment. ... Rising US interest rates and a higher US dollar have contributed to these developments.
https://www.rba.gov.au/publications/fsr/2018/oct/global-fin-env.html
The Global Financial Environment
8 Apr 2021
FSR
– April 2021
Global bodies, as well as national regulators, are also working on ensuring an orderly transition away from London Inter-bank Offered Rates (LIBOR), a key global interest rate benchmark that is ... With a faster recovery and so rising bond yields in
https://www.rba.gov.au/publications/fsr/2021/apr/global-financial-environment.html
The Global Financial Environment
8 Apr 2022
FSR
– April 2022
Higher inflation and interest rates, and lower real income growth, would also pose risks for households and businesses with high debt burdens. ... Higher interest rates and the war in Ukraine have triggered a decline in financial asset prices.
https://www.rba.gov.au/publications/fsr/2022/apr/global-financial-environment.html
The Global Financial Environment
9 Oct 2020
FSR
– October 2020
This includes mandating an increase in bank lending to micro- and small-enterprises (MSEs) at favourable interest rates and loan forbearance until March 2021, which has limited the increase in NPLs. ... Long-term interest rates are expected to remain at
https://www.rba.gov.au/publications/fsr/2020/oct/global-financial-environment.html
Box D: Stress Testing and Australian Bank Resilience
7 Oct 2022
FSR
– October 2022
Higher inflation and higher interest rates on mortgages squeeze households real incomes, making it more difficult to service debt, which could lead to more defaults and larger credit losses for banks. ... GDP growth slows as higher interest rates weigh
https://www.rba.gov.au/publications/fsr/2022/oct/box-d-stress-testing-and-australian-bank-resilience.html
Household and Business Finances
8 Apr 2022
FSR
– April 2022
Sizeable interest rate buffers are built into loan serviceability assessments, which are designed to ensure that borrowers are able to service higher interest rates (based on their financial situation at the ... Key reasons for this are that many of
https://www.rba.gov.au/publications/fsr/2022/apr/household-business-finances.html
The Australian Financial System
9 Oct 2020
FSR
– October 2020
Profits are also likely to be constrained by forecast weak credit growth and ongoing pressure on net interest margins. ... One factor weighing on the outlook for margins is the low interest rate environment, in particular as banks' hedges on their
https://www.rba.gov.au/publications/fsr/2020/oct/australian-financial-system.html