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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Statement on Monetary Policy
30 Jul 2003
SMP
PDF
47KB
There are a number of measurement issuesthat arise in calculating real interest rates.There is no unique measure of this conceptbecause interest rates vary depending onsuch factors as the maturity and ... Another important issue is thatmeasures of real
https://www.rba.gov.au/publications/smp/2001/feb/pdf/box-b.pdf
Statement on Monetary Policy
10 May 2002
Bulletin
– May 2002
The latter has been boosted by low interest rates and rising house prices, as well as an historically low unemployment rate. ... This is the highest rate of issue since the mid 1990s when interest rates also favoured Australian investments.
https://www.rba.gov.au/publications/bulletin/2002/may/1.html
Monetary Targeting: The International Experience | Conference – 1989
20 Jun 1989
Conferences
information on which policy is based (. ), and the elasticity of real demand with respect to the real interest rate. ... The mechanism by which policy works can be thought of as being through the effect of the real interest rate on real demand.
https://www.rba.gov.au/publications/confs/1989/edey.html
Risk Management
20 Sep 2018
RBA Annual Report
– 2018
The Reserve Bank is exposed to very little interest rate risk on its balance sheet liabilities. ... Interest paid on these deposits reflects domestic short-term interest rates, effectively hedging part of the interest rate exposure of the domestic asset
https://www.rba.gov.au/publications/annual-reports/rba/2018/risk-management.html
Risk Management
16 Oct 2015
RBA Annual Report
– 2015
In contrast, securities with floating cash flows carry very little interest rate risk. ... Interest paid on these deposits reflects domestic short-term interest rates, effectively hedging part of the interest rate exposure of the domestic asset portfolio.
https://www.rba.gov.au/publications/annual-reports/rba/2015/risk-management.html
The Smoothing of Official Interest Rates
7 Dec 2006
Conferences
PDF
190KB
RBA Conference Volume 1997
https://www.rba.gov.au/publications/confs/1997/pdf/lowe-ellis.pdf
The Movement of Interest Rates
18 Oct 2001
Bulletin
PDF
78KB
Overtime, if that were maintained, it would causeinflation to rise, and, with a fixed nominalinterest rate, the real interest rate woulddecline, thus leading to further increases indemand and inflation. ... If, on the other hand, someone is arguingfor
https://www.rba.gov.au/publications/bulletin/2001/oct/pdf/bu-1001-3.pdf
3.3 Risk Management
19 Oct 2023
RBA Annual Report
– October 2023
Risk Management | Reserve Bank of Australia Annual Report – October 2023
https://www.rba.gov.au/publications/annual-reports/rba/2023/risk-management.html
Semi-Annual Statement on Monetary Policy
10 May 1998
Bulletin
– May 1998
money. The low interest rate environment and good company profitability have supported the US share market. ... This is because arbitrage by market participants works to ensure that three-month interest rates reflect the expected average cash rate over
https://www.rba.gov.au/publications/bulletin/1998/may/2.html
Economic Conditions
6 Feb 2024
SMP
– February 2024
Economic Conditions | Statement on Monetary Policy – February 2024
https://www.rba.gov.au/publications/smp/2024/feb/economic-conditions.html