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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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Appendix 1: Data

1 Nov 1995 RDP 9508
David Gruen and Jacqueline Dwyer
Source: ABS Cat. No. 5206.0. Interest rates are 90-day bank bill rates. ... Source: Reserve Bank of Australia, Bulletin. The nominal exchange rate is the trade weighted index, expressed as a quarterly average.
https://www.rba.gov.au/publications/rdp/1995/9508/appendix-1.html
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DSGE Reno: Adding a Housing Block to a Small Open Economy Model

1 Apr 2018 RDP 2018-04
Christopher G Gibbs, Jonathan Hambur and Gabriela Nodari
t. is the nominal interest rate factor, and starred variables denote foreign quantities. ... Therefore, short-term nominal interest rates are set according to:.
https://www.rba.gov.au/publications/rdp/2018/2018-04/full.html
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Introduction

1 May 1986 RDP 8602
Robert G. Trevor
In a Keynesian framework, anticipation of future monetary contraction leads to increases in real and nominal interest rates today. ... This produces expectations of higher inflation in the future, raising the nominal interest rate now, via the well known
https://www.rba.gov.au/publications/rdp/1986/8602/introduction.html
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Simple Rules of Thumb for Interest Rate Policy?

1 Jul 1989 RDP 8905
Malcolm L. Edey
An alternative way of specifying the rule of thumb is to define it in terms of the real interest rate rather than the nominal. ... Thus the optimal policy can be defined indifferently as either a real or a nominal interest rate response to the current
https://www.rba.gov.au/publications/rdp/1989/8905/simple-rules-of-thumb-for-interest-rate-policy.html
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Main Equations

8 Oct 2019 RDP 2019-01
Trent Saunders and Peter Tulip
Figure 6 shows our estimated response of dwelling investment to real interest rates. ... According to the Taylor principle, nominal interest rates should respond more than one-for-one to deviations of inflation from target.
https://www.rba.gov.au/publications/rdp/2019/2019-01/main-equations.html
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The Household Cash Flow Channel of Monetary Policy

1 Dec 2016 RDP 2016-12
Gianni La Cava, Helen Hughson and Greg Kaplan
Under the credit-foncier model, required repayments are a positive function of the nominal interest rate. ... For variable-rate mortgages, the estimated required nominal repayments should change as interest rates change.
https://www.rba.gov.au/publications/rdp/2016/2016-12/full.html
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Monetary Transmission in a Deregulated Financial System

1 Dec 1988 RDP 8811
Dirk Morris
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/1988/8811.html
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Appendix 1: Data Sources

1 Nov 1988 RDP 8809
Graham Elliott and Colm Kearney
The nominal series is used. The series is the money base as published in the Reserve of Australia Occasional Paper 4B and RBA Bulletins (various). ... The series chosen was the rate on two year government bonds as reported in the RBA Bulletins (various).
https://www.rba.gov.au/publications/rdp/1988/8809/appendix-1.html
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Introduction

29 May 2017 RDP 2017-02
James Bishop and Peter Tulip
Central banks say they respond to accelerating inflation by raising nominal interest rates. ... But if inflation responded positively to changes in interest rates, tighter policy would amplify the inflation, resulting in instability of nominal interest
https://www.rba.gov.au/publications/rdp/2017/2017-02/introduction.html
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The Unit-effect Normalisation in Set-identified Structural Vector Autoregressions

11 Oct 2022 RDP 2022-04
Matthew Read
to the point where the impact response of the policy rate is zero. ... Assume there is a scalar parameter of interest that is a function of the structural parameters,.
https://www.rba.gov.au/publications/rdp/2022/2022-04/full.html
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