Search: Nominal interest rate
Did you mean
official interest rates?
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.
Search Results
Household and Business Balance Sheets
10 Mar 2009
FSR
– March 2009
lower inflation and thus lower nominal interest rates. ... Despite this easing in business interest rates, the slowdown in business earnings over the past year has strained some firms' cashflows.
https://www.rba.gov.au/publications/fsr/2009/mar/house-bus-bal-sheet.html
Drivers of Demand | Submission to the Inquiry into Home Ownership June 2015 | Housing and Housing Finance | Submissions
1 Jun 2015
Submissions
In particular, the transition to a low-inflation regime, implying lower nominal interest rates, has significantly increased households' borrowing capacities relative to their current incomes, and therefore their capacity to service ... Graph 20. Over the
https://www.rba.gov.au/publications/submissions/housing-and-housing-finance/inquiry-into-home-ownership/drivers-of-demand.html
The Global Financial Environment
20 Oct 2016
FSR
– October 2016
In the major advanced economies, banking system profitability remains under pressure given low rates of nominal growth and the low interest rate environment. ... lower production costs (including the cost of debt service due to the current low interest
https://www.rba.gov.au/publications/fsr/2016/oct/global-fin-env.html
The Macroeconomic and Financial Environment
10 Sep 2004
FSR
– September 2004
Foremost amongst these is the decline in nominal interest rates that has accompanied lower inflation. ... interest rates, and that further significant increases risked pushing prices to unsustainable levels.
https://www.rba.gov.au/publications/fsr/2004/sep/mac-fin-env.html
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
Submission to the Inquiry into Affordable Housing–February 2014 | Housing and Housing Finance | Submissions
1 Feb 2014
Submissions
Typically the interest rate used to calculate allowable loan sizes does not fall as much as actual interest rates, or only up to a point. ... Borrowers can service larger loans with the same repayment when average interest rates decline (Graph 16).
https://www.rba.gov.au/publications/submissions/housing-and-housing-finance/inquiry-affordable-housing/
Key Financial Developments Since the Wallis Inquiry | Submission to the Financial System Inquiry – March 2014 | Financial Sector |…
1 Mar 2014
Submissions
Nominal interest rates eventually fell in line with the lower inflation compensation required. ... As nominal interest rates fall, borrowers can service a larger loan with the same repayment.
https://www.rba.gov.au/publications/submissions/financial-sector/financial-system-inquiry-2014-03/financial-developments-since-wallis-inquiry.html