Search: Nominal interest rate
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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News and Interest Rate Expectations: A Study of Six Central Banks | Conference – 2004
9 Aug 2004
Conferences
The efficient market hypothesis suggests that interest rate futures incorporate all relevant information about future interest rates that is available at any point in time. ... We measure these using changes in daily implied interest rates from 90-day
https://www.rba.gov.au/publications/confs/2004/connolly-kohler.html
Twenty-five Years of Inflation Targeting in Australia | Conference – 2018
12 Apr 2018
Conferences
higher nominal interest rate structure. ... We also need to question whether the real interest rate structure has shifted lower permanently, because of permanently lower trend growth say, which would also shift down the nominal rate structure
https://www.rba.gov.au/publications/confs/2018/debelle.html
The Evolving Structure of the Australian Financial System | Conference – 1996
9 Jul 1996
Conferences
to money-market rates and this means that the difference between the two is likely to be largest at the bottom of the interest rate cycle. ... Another factor influencing this relative cost of funds in the past few years has been the decline in inflation
https://www.rba.gov.au/publications/confs/1996/edey-gray.html
Conclusions
31 Dec 1977
RDP
1977-06
This is not to deny that market forces have influenced nominal interest rates; indeed, the bond rate reaction function allows for adjustment towards a target rate determined by the monetary growth ... similar way as the standard RBA76 model in which the
https://www.rba.gov.au/publications/rdp/1977/7706/conclusions.html
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Does Monetary Policy Affect Non-mining Business Investment in Australia? Evidence from BLADE
22 Dec 2023
RDP
2023-09
nmbi: non-mining business investment – ABS national accounts. btcs: Beckers (2020) shock measure, not accounting for cash rate expectations. ... cr: cash rate changes – RBA statistical table F1.1 Interest Rates and Yields – Money Market – Monthly.
https://www.rba.gov.au/publications/rdp/2023/2023-09/read-me.html
Twenty-five Years of Inflation Targeting in Australia: Are There Better Alternatives for the Next Twenty-five Years? | Conference – 2018
12 Apr 2018
Conferences
where the nominal interest rate i set in period t is a function of the rate in period t 1 and α measures how the central bank responds to shocks that ... Third, in an extreme crisis when real interest rates may need to fall sharply to stabilise falling
https://www.rba.gov.au/publications/confs/2018/mckibbin-panton.html
Data Appendix
1 Sep 1991
RDP
9108
Real interest rates are calculated by adjusting annualised nominal interest rates for annualised inflationary expectations. ... Short Nominal Interest Rates. US, UK, Japan and Germany – 3 month Eurocurrency rates taken at last trading day of month from
https://www.rba.gov.au/publications/rdp/1991/9108/data-appendix.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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Scenario Analysis
31 Dec 2014
RDP
2014-11
The model suggests that Australian nominal interest rates would have been considerably higher if the nominal exchange rate had not appreciated, reflecting higher domestic inflation. ... Higher inflation and stronger economic growth would have translated
https://www.rba.gov.au/publications/rdp/2014/2014-11/sce-analysis.html
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Recent Thinking About Exchange Rate Determination and Policy | Conference – 1993
12 Jul 1993
Conferences
of nominal exchange rate changes, and the role of real exchange rates in the trade balance. ... The evidence on the real effects of nominal exchange rate changes is, at first sight, overwhelming: for industrial countries, especially since 1980, nominal
https://www.rba.gov.au/publications/confs/1993/krugman.html