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.
Search Results
Evaluating Simple Monetary-policy Rules for Australia | Conference – 1997
21 Jul 1997
Conferences
potential output, c an unspecified constant real interest rate, and γ a reaction parameter. ... A similar result follows when the central bank thinks that the neutral real interest rate is higher than it actually is, and so tries to keep interest rates
https://www.rba.gov.au/publications/confs/1997/de-brouwer-oregan.html
Financial Conditions
6 Feb 2024
SMP
– February 2024
Financial Conditions | Statement on Monetary Policy – February 2024
https://www.rba.gov.au/publications/smp/2024/feb/financial-conditions.html
Box C: Interest Rate Risk in the Australian Financial System
10 Apr 2018
FSR
– April 2018
real interest rates rose (by the equivalent of one-quarter of the current nominal risk-free interest rate) or if nominal interest rates increased (by 125 basis points) because of a ... Estimates show that the impact on capital of an increase in real
https://www.rba.gov.au/publications/fsr/2018/apr/box-c.html
Is Monetary Policy Less Effective When Interest Rates Are Persistently Low? | Conference – 2017
16 Mar 2017
Conferences
Conventional consumption theory suggests that low real interest rates depress saving and boost consumption through intertemporal substitution. ... When the real interest rate is low, the returns from postponing consumption are also low.
https://www.rba.gov.au/publications/confs/2017/borio-hofmann.html
Box A: Low Interest Rates and Asset Price Risk
10 Apr 2018
FSR
– April 2018
Financial Stability Review – April 2018 Box A: Low Interest Rates and Asset Price Risk. ... As a result, prices for a broad range of assets, including equities, corporate bonds and commercial real estate, have risen because risk-free interest rates
https://www.rba.gov.au/publications/fsr/2018/apr/box-a.html
The Economics of Low Interest Rates
29 Dec 2022
Conferences
PDF
1053KB
RBA Annual Conference 2022
https://www.rba.gov.au/publications/confs/2022/pdf/rba-conference-2022-mian-presentation.pdf
The Smoothing of Official Interest Rates | Conference – 1997
21 Jul 1997
Conferences
The task for the monetary authorities is simply to move the nominal interest rate in line with the random changes in the real interest rate. ... we simply assumed a linear relationship between the real interest rate and economic activity.
https://www.rba.gov.au/publications/confs/1997/lowe-ellis.html
Semi-Annual Statement on Monetary Policy
31 Jul 2003
SMP
PDF
25KB
Proxies for real interest rates can be moreuseful over long periods, particularly wherethere are pronounced differences in theprevailing inflation rate and large movementsin nominal interest rates and inflationexpectations. ... It takes a long time
https://www.rba.gov.au/publications/smp/1997/may/pdf/box-4.pdf
Financial Stability in a Low Interest Rate Environment: An Australian Case Study | Conference – 2017
16 Mar 2017
Conferences
from a decline in the equilibrium real interest rate. ... A decline in real interest rates could occur because trend economic growth has declined, but that is not a scenario in which an increase in household indebtedness would be regarded as
https://www.rba.gov.au/publications/confs/2017/ellis-littrell.html
Risk Management
12 Apr 2020
RBA Annual Report
– 2020
The Reserve Bank is exposed to 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/2020/risk-management.html