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
The Rise of Household Indebtedness | Conference – 2007
20 Aug 2007
Conferences
Real interest rates declined in many countries after central banks successfully fought high levels of inflation. ... Baseline results, shown in row I, suggest that the decline in inflation has been a major determinant of the rise in indebtedness, though
https://www.rba.gov.au/publications/confs/2007/kent-ossolinski-willard.html
Twenty-five Years of Inflation Targeting in Australia | Conference – 2018
12 Apr 2018
Conferences
a given level of the real interest rate). ... We also need to question whether the real interest rate structure has shifted lower permanently, because of permanently lower trend growth say, which would also shift down the nominal rate structure
https://www.rba.gov.au/publications/confs/2018/debelle.html
Twenty-five Years of Inflation Targeting in Australia: Are There Better Alternatives for the Next Twenty-five Years? | Conference – 2018
12 Apr 2018
Conferences
Third, in an extreme crisis when real interest rates may need to fall sharply to stabilise falling output, a nominal income target automatically allows expected inflation to rise well above the ... In the case of extreme negative supply shocks, nominal
https://www.rba.gov.au/publications/confs/2018/mckibbin-panton.html
The Australian Financial System in the 2000s: Dodging the Bullet | Conference – 2011
24 Jul 2000
Conferences
Second, more turnover occurs in the derivative markets than the physical markets, and the relative importance of the bond and interest rate derivatives market increased throughout the decade. ... and was seen by many as putting pressure on bank margins
https://www.rba.gov.au/publications/confs/2011/davis.html
Monetary and Macroprudential Policies: The Case for a Separation of Powers | Conference – 2018
12 Apr 2018
Conferences
Domestic lending, the most sensitive to domestic interest rates, was not the main source of the problem. ... insolvency. Meanwhile, real short-term interest rates were generally lower than those in the United Kingdom (Figure 8).
https://www.rba.gov.au/publications/confs/2018/broadbent.html
Recent Thinking About Exchange Rate Determination and Policy | Conference – 1993
12 Jul 1993
Conferences
of nominal exchange rate changes, and the role of real exchange rates in the trade balance. ... Thirdly, it is difficult to reconcile a ‘real shocks’ story of real exchange rates with the observed changes in behaviour across exchange rate regimes.
https://www.rba.gov.au/publications/confs/1993/krugman.html
A Factor Model Analysis of the Effects of Inflation Targeting on the Australian Economy | Conference – 2018
12 Apr 2018
Conferences
that includes the ‘real’ and ‘nominal’ factors from our approximate dynamic factor model and the policy interest rate. ... t. No. Real OCR. Interest rates. Δx. t. No. 3-month bank bill.
https://www.rba.gov.au/publications/confs/2018/hartigan-morley.html
The Changing Role of the Private Sector in China | Conference – 2016
18 Mar 2016
Conferences
These firms have consistently generated higher rates of growth of total factor productivity that, in turn, have been reflected in a higher return on assets. ... the interest payments due on these prior loans) and to finance wage payments, social security
https://www.rba.gov.au/publications/confs/2016/lardy.html
Discussion | Conference – 2018
12 Apr 2018
Conferences
The tentative experience so far suggests that negative interest rates mainly work through the exchange rate, which some would see as ‘beggar thy neighbour’ policy. ... As such, it was appropriate to consider improvements now. One issue raised was that
https://www.rba.gov.au/publications/confs/2018/mckibbin-panton-disc.html
Discussion on News and Interest Rate Expectations: A Study of Six Central Banks | Conference – 2004
9 Aug 2004
Conferences
The benchmark result in the paper is for the interest rate futures four quarters ahead. ... If nobody knew the objectives of monetary policy or the central bank's framework for setting interest rates, interest rates would be completely unpredictable and
https://www.rba.gov.au/publications/confs/2004/connolly-kohler-disc.html