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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Appendix A: Affine Term Structure Model
12 May 2023
RDP
2023-04
In the model the one-period nominal interest rate r. t. is given by. ... Consistent with ACM, our factors are the first K principal components from a panel of nominal interest rates.
https://www.rba.gov.au/publications/rdp/2023/2023-04/appendix-a.html
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Conclusions
1 Nov 1990
RDP
9009
RDP 9009: An Empirical Model of Australian Interest Rates, Exchange Rates and Monetary Policy 5. ... interest rates, and the $A/$US exchange rate. On the basis of the evidence uncovered by this model, we make the following conclusions:.
https://www.rba.gov.au/publications/rdp/1990/9009/conclusions.html
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Do Interest Rates Affect Business Investment? Evidence from Australian Company-level Data
1 Apr 2018
RDP
2018-05
Our results do not establish why there is a link between interest rates and investment because it is difficult to identify a plausibly exogenous source of interest rate variation. ... This suggests that declines in the cash rate in recent years have not
https://www.rba.gov.au/publications/rdp/2018/2018-05/full.html
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The Interest Rate Reaction Functions
23 Mar 2009
RDP
2009-01
Here,. represents the real interest rate in the efficient economy. Equations (88) and (89) can be used to write:. ... In practice, however, central bankers set the interest rates to achieve their targets.
https://www.rba.gov.au/publications/rdp/2009/2009-01/interest-rate-reaction-functions.html
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Model Responses
8 Oct 2019
RDP
2019-01
The decline in the user cost reflects a fall in long-term real interest rates, which in turn reflects falls in global rates and expectations that the decline in short rates ... The model estimates that the reduction in real interest rates accounts for
https://www.rba.gov.au/publications/rdp/2019/2019-01/model-responses.html
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The Evolution of Consumer Payments in Australia: Results from the 2022 Consumer Payments Survey
27 Nov 2023
RDP
2023-08
By comparison, only around three-quarters of people use deposit services, and a smaller share of people rate these as convenient relative to withdrawal services. ... The high rate of card acceptance by merchants partly reflects the ubiquity of card
https://www.rba.gov.au/publications/rdp/2023/2023-08/full.html
DSGE Reno: Adding a Housing Block to a Small Open Economy Model
1 Apr 2018
RDP
2018-04
A fall in the steady-state real interest rate shifts the supply curve for the housing capital stock to the right. ... As the steady-state real interest rate falls, investment in the housing capital stock rises in both cases.
https://www.rba.gov.au/publications/rdp/2018/2018-04/full.html
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Appendix A: Data Sources
31 Dec 2001
RDP
2001-04
RDP 2001-04: Measuring the Real Exchange Rate: Pitfalls and Practicalities Appendix A: Data Sources. ... Data limitations have restricted the available data sample to 1990 for nominal and 1991 for the real third-country weighted exchange rate index.
https://www.rba.gov.au/publications/rdp/2001/2001-04/appendix-a.html
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References
19 Dec 2023
RDP
2023-09
Hambur J and G La Cava (2018), ‘Do Interest Rates Affect Business Investment? ... Lane K and T Rosewall (2015), ‘Firms' Invesment Decisions and Interest Rates’, RBA Bulletin, June, pp 1–7.
https://www.rba.gov.au/publications/rdp/2023/2023-09/references.html
Firms' Price-setting Behaviour: Insights from Earnings Calls
11 Sep 2023
RDP
2023-06
interest. The classifier we use can be used to classify documents into any arbitrary set of themes. ... y. t. l. e. t. where y. t. is the measure of interest.
https://www.rba.gov.au/publications/rdp/2023/2023-06/full.html
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