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
MARTIN Has Its Place: A Macroeconometric Model of the Australian Economy
20 Aug 2019
RDP
PDF
1571KB
Examples include. interest rates, the exchange rate, the expenditure components of real GDP, labour market variables. ... for households to save a larger proportion of their income when real interest rates are high.
https://www.rba.gov.au/publications/rdp/2019/pdf/rdp2019-07.pdf
Do Monetary Policy and Economic Conditions Impact Innovation? Evidence from Australian Administrative Data
15 Feb 2024
RDP
2024-01
policy is constrained by the effective lower bound on interest rates and therefore cannot offset economic downturns. ... As such, it might appear that higher interest rates lead to more innovation when both are moving with economic conditions.
https://www.rba.gov.au/publications/rdp/2024/2024-01/full.html
See 8 more results from "RDP 2024-01"
Endogenous Production Networks and Non-linear Monetary Transmission
19 Dec 2023
Research Workshop
PDF
2202KB
RBA Workshop 2023
https://www.rba.gov.au/publications/workshops/research/2023/pdf/rba-workshop-2023-ghassibe.pdf
Results
1 Jan 1992
RDP
9201
Macfarlane and Tease (1989) argue that for some of the floating period the relationship between the exchange rate and interest rates was dominated by a policy reaction function from the exchange ... rate to interest rates.
https://www.rba.gov.au/publications/rdp/1992/9201/results.html
See 8 more results from "RDP 9201"
The Impact of Interest Rates on Bank Profitability: A Retrospective Assessment Using New Cross-country Bank-level Data
8 Jun 2023
RDP
PDF
1310KB
term rate has on the profitability of smaller banks when interest rates are low. ... to increase the negative effect of lowering rates on profitability because interest rate hedges become.
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-05.pdf
Firms’ Price-setting Behaviour: Insights from Earnings Calls
6 Nov 2023
RDP
PDF
1677KB
about our topics of interest. A subset of forward-looking indices is also developed. ... H2: the indices should have a strong contemporaneous or leading relationship with similar real-.
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-06.pdf
Adoption of Emerging Digital General-purpose Technologies: Determinants and Effects
19 Dec 2023
RDP
PDF
1692KB
The coefficients of interest are the. betas related to the lags and leads. ... 14. EBIT (earnings before interest and tax). The results remain broadly unchanged, though the measure.
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-10.pdf
Macrofinancial Stress Testing on Australian Banks
13 Sep 2023
RDP
PDF
1940KB
It also enables the scenario to incorporate changes in interest rates or fiscal policy, if desired. ... 13 To simplify the modelling, we assume interest rates on business loans do not change.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-03.pdf
Do Monetary Policy and Economic Conditions Impact Innovation? Evidence from Australian Administrative Data
13 Feb 2024
RDP
PDF
1260KB
policy is constrained by the effective lower bound on interest rates and therefore cannot offset. ... policy. While this literature tends to focus on the effects of US policy on interest rates, investment.
https://www.rba.gov.au/publications/rdp/2024/pdf/rdp2024-01.pdf
Cost-benefit Analysis of Leaning against the Wind
1 Jul 2019
RDP
2019-05
The level of real credit returns to its baseline level around eight years after the initial increase in interest rates. ... When they include real or nominal interest rates in addition to credit growth in their models predicting crises, they find that
https://www.rba.gov.au/publications/rdp/2019/2019-05/full.html
See 11 more results from "RDP 2019-05"