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.
Search Results
Overview
12 Feb 2023
SMP
- February 2023
PDF
64KB
https://www.rba.gov.au/publications/smp/2023/feb/pdf/overview.pdf
The Unit-effect Normalisation in Set-identified Structural Vector Autoregressions
6 Oct 2022
RDP
PDF
2224KB
100 basis point federal funds rate shock under different sets of identifying restrictions. ... e.g. Galí 2008), there exists a value for the persistence of the monetary policy shock such that the nominal interest.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-04.pdf
Do Interest Rates Affect Business Investment? Evidence from Australian Company-level Data
27 Apr 2018
RDP
PDF
1257KB
interest rate hedging activities. Some report the ultimate rate they face, while others report rates. ... These are included in the company-level. estimates. 4 This is a nominal interest rate, whereas theory would suggest the real interest rate should be
https://www.rba.gov.au/publications/rdp/2018/pdf/rdp2018-05.pdf
The Term Structure of Interest Rates, Real Activity and Inflation
31 Jan 2006
RDP
PDF
438KB
The issue of to what extent nominal interest rates reflect inflationary expectations is taken up in more detail in Section 4. ... iqi," is the difference between the m period nominal interest rate and the n period nominal interest rate at time t.
https://www.rba.gov.au/publications/rdp/1992/pdf/rdp9204.pdf
Statement on Monetary Policy
30 Jul 2003
SMP
PDF
47KB
This takes account ofthe fact that part of the nominal interest thatborrowers agree to pay to lenders representscompensation for anticipated inflation. ... Another important issue is thatmeasures of real interest rates should ideallybe constructed from
https://www.rba.gov.au/publications/smp/2001/feb/pdf/box-b.pdf
A Random Walk Around the $A: Expectations, Risk, Interest Rates and Consequences for External Imbalance
19 Nov 2012
RDP
PDF
1760KB
19. IV. INFLATION AND INfEREST RATES. Figures 5 and 6 display, respectively, short-term nominal interest rates and. ... a). 18 16. %. - Australia. 21. Figure 5. Nominal Interest Rates.
https://www.rba.gov.au/publications/rdp/1989/pdf/rdp8906.pdf
Monetary Transmission in a Deregulated Financial System
19 Nov 2012
RDP
PDF
825KB
stochastic world, the model does not imply that fixing the nominal interest rate is. ... with the nominal interest rate. If the nominal interest rate was below current.
https://www.rba.gov.au/publications/rdp/1988/pdf/rdp8811.pdf
Real Exchange Rates and the Globalisation of Financial Markets
31 Jan 2006
RDP
PDF
669KB
currency in period t; r(t) is the average nominal interest rate on bilateral net foreign. ... One reason often advanced for this is that real exchange rates take time to revert towards equilibrium, so that choice of a similarly long-term interest rate
https://www.rba.gov.au/publications/rdp/1992/pdf/rdp9203.pdf
Statement on Monetary Policy
5 May 2023
SMP
- May 2023
PDF
9302KB
https://www.rba.gov.au/publications/smp/2023/may/pdf/statement-on-monetary-policy-2023-05.pdf
The Rise in Household Liquidity
24 Nov 2021
RDP
PDF
1793KB
interest rates and unique financial innovations such as mortgage offset and redraw accounts that. ... projection methods to demonstrate that lower interest rates are associated with higher household.
https://www.rba.gov.au/publications/rdp/2021/pdf/rdp2021-10.pdf