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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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
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
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
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
Outlook
6 Feb 2024
SMP
– February 2024
Outlook | Statement on Monetary Policy – February 2024
https://www.rba.gov.au/publications/smp/2024/feb/outlook.html
In Brief: Financial Stability Review – October 2023
6 Oct 2023
FSR
This issue of our Financial Stability Review assesses the current condition of the financial system and potential risks to financial stability.
https://www.rba.gov.au/publications/fsr/2023/oct/
Risk Management
17 Oct 2019
RBA Annual Report
– 2019
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/2019/risk-management.html
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
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