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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MARTIN Has Its Place: A Macroeconometric Model of the Australian Economy
1 Aug 2019
RDP
2019-07
Examples include interest rates, the exchange rate, the expenditure components of real GDP, labour market variables and inflation. ... We proxy for the latter with the real mortgage interest rate, which captures the tendency for loan-to-valuation ratios
https://www.rba.gov.au/publications/rdp/2019/2019-07/full.html
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Appendix F: Real Exchange Rate Shocks are AR(1)
1 Jun 1993
RDP
9307
RDP 9307: Explaining Forward Discount Bias: Is it Anchoring? Appendix F: Real Exchange Rate Shocks are AR(1). ... Firstly, real exchange rate shocks are uncorrelated with the forward discount by assumption.
https://www.rba.gov.au/publications/rdp/1993/9307/appendix-f.html
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The Consequences of Low Interest Rates for the Australian Banking Sector
21 Dec 2022
RDP
2022-08
In jurisdictions with a negative policy rate, retail deposit interest rates remained close to zero (albeit negative). ... rate. So cash rate reductions remain an effective policy tool during large downturns and at low interest rates.
https://www.rba.gov.au/publications/rdp/2022/2022-08/full.html
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Monthly Movements in the Australian Dollar and Real Short-Term Interest Differentials: An Application of the Kalman Filter
1 Nov 1991
RDP
9111
Research Discussion Paper – RDP 9111 Monthly Movements in the Australian Dollar and Real Short-Term Interest Differentials: An Application of the Kalman Filter.
https://www.rba.gov.au/publications/rdp/1991/9111/
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Appendix: Data Sources and Methods
1 Aug 1988
RDP
8805
Bulletin. ; historical series are available on the Bulletin Database. The monthly data are averaged for each quarter, to form a better representation of the average interest rate prevailing in the quarter. ... Data for real interest rates are calculated
https://www.rba.gov.au/publications/rdp/1988/8805/appendix.html
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Data Description
21 Jun 2023
RDP
2023-05
To examine the impact of interest rates on banks' profitability, we rely on confidential bank-level data. ... NIMs and ROAs against the change in interest rates for the mean bank in all countries.
https://www.rba.gov.au/publications/rdp/2023/2023-05/data-description.html
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The Rise in Household Liquidity
10 Nov 2021
RDP
2021-10
Specifically, disinflation and falling real interest rates have increased housing prices and housing deposits, and have also made it easier to amortise existing debt. ... The relevant interest rate is derived from RBA statistical table ‘F5 Indicator
https://www.rba.gov.au/publications/rdp/2021/2021-10/full.html
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Results
31 Dec 2005
RDP
2005-04
so that the parameter δ gives the marginal sensitivity of the bubble's probability of bursting to changes in the real interest rate, at the sceptic's benchmark settings. ... in their responsiveness to real interest rates – with values of β = 0.5 and 1
https://www.rba.gov.au/publications/rdp/2005/2005-04/results.html
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Appendix A: Data Details
12 Sep 2014
RDP
2014-06
equals Real interest rate (r). 3.3. Council rates. 0.3. plus repairs. ... A.7 Expected Inflation. To present interest rates and expected appreciation in real terms we need a measure of inflation expectations.
https://www.rba.gov.au/publications/rdp/2014/2014-06/appendix-a.html
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Do Monetary Policy and Economic Conditions Impact Innovation? Evidence from Australian Administrative Data
15 Feb 2024
RDP
2024-01
policy is constrained by the effective lower bound on interest rates and therefore cannot offset economic downturns. ... As such, it might appear that higher interest rates lead to more innovation when both are moving with economic conditions.
https://www.rba.gov.au/publications/rdp/2024/2024-01/full.html
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