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.
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The Neutral Interest Rate
15 Sep 2017
Bulletin
– September 2017
Central banks monitor the neutral interest rate for a number of reasons, a key one being that it provides a benchmark for assessing the stance of monetary policy. This article describes the determinants of the neutral interest rate and discusses its
https://www.rba.gov.au/publications/bulletin/2017/sep/2.html
Firms' Investment Decisions and Interest Rates
18 Jun 2015
Bulletin
– June 2015
Firms typically evaluate investment opportunities by calculating expected rates of return and the payback period (the time taken to recoup the capital outlay). Liaison and survey evidence indicate that Australian firms tend to require expected
https://www.rba.gov.au/publications/bulletin/2015/jun/1.html
Is Monetary Policy Less Effective When Interest Rates Are Persistently Low? | Conference – 2017
16 Mar 2017
Conferences
Finally, just as in the case of bank lending, nominal interest rates may matter quite independently of real rates. ... illusion or specific transmission channels working through, or proxied by, the nominal interest rate.
https://www.rba.gov.au/publications/confs/2017/borio-hofmann.html
Monetary Targeting: The International Experience | Conference – 1989
20 Jun 1989
Conferences
t. is the log of the price level. R. t. is the nominal interest rate. ... Thus the optimal policy can be defined indifferently as either a real or a nominal interest rate response to the current price level signal.
https://www.rba.gov.au/publications/confs/1989/edey.html
The Smoothing of Official Interest Rates | Conference – 1997
21 Jul 1997
Conferences
For instance, in the case where ω=0.05 (the smallest penalty on changing interest rates that we consider), the standard deviation of the quarterly change in the nominal interest rate ... It is not the case that optimal monetary policy involves making
https://www.rba.gov.au/publications/confs/1997/lowe-ellis.html
Bulletin August 2001 – Statement on Monetary Policy
10 Aug 2001
Bulletin
band. The Bank of England has cut interest rates by 1 percentage point this year, taking its policy rate down to 5 per cent. ... However, several other emerging market economies have had to raise interest rates, despite slowing output growth, to counter
https://www.rba.gov.au/publications/bulletin/2001/aug/1.html
Financial Stability in a Low Interest Rate Environment: An Australian Case Study | Conference – 2017
16 Mar 2017
Conferences
More recently, nominal interest rates have declined further, relative to the averages seen in the rest of the inflation-targeting period. ... One issue from low nominal interest rates is that the central bank has less room for conventional monetary
https://www.rba.gov.au/publications/confs/2017/ellis-littrell.html
Semi-Annual Statement on Monetary Policy
10 Nov 1998
Bulletin
– November 1998
The move aimed to profit either from a fall in the exchange rate or, more likely, a weakening in the share market as interest rates rose in response to exchange rate ... A similar pattern of short-term interest rates was evident in late August and early
https://www.rba.gov.au/publications/bulletin/1998/nov/1.html
The Role of the Exchange Rate in Monetary Policy – the Experience of Other Countries | Conference – 1993
12 Jul 1993
Conferences
Whilst a sizeable dispersion of inflation still persisted, the credibility of the exchange rates was tending to bring about a convergence of nominal interest rates. ... 0 schedule would slope forward, as shown. This system is not stable (see Appendix C);
https://www.rba.gov.au/publications/confs/1993/artis.html
Semi-Annual Statement on Monetary Policy
10 May 1997
Bulletin
– May 1997
Graph 9. The housing recovery is being supported by an historically high level of affordability of houses which, in turn, reflects the low level of nominal interest rates. ... Falls in mortgage interest rates detracted 0.5 of a percentage point from the
https://www.rba.gov.au/publications/bulletin/1997/may/1.html