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
Affine Endeavour: Estimating a Joint Model of the Nominal and Real Term Structures of Interest Rates in Australia
27 Feb 2018
RDP
2018-02
financial markets, inflation, interest rates, modelling, money. We outline a ‘workhorse’ affine term structure model of nominal and real interest rates in Australia. ... Nevertheless, they suggest that medium- to long-term expectations for real
https://www.rba.gov.au/publications/rdp/2018/2018-02.html
The Model
27 Feb 2018
RDP
2018-02
It is a joint model of the nominal and real term structures of interest rates. ... Considering first an ATSM of nominal interest rates, we assume that the one-period nominal interest rate (r.
https://www.rba.gov.au/publications/rdp/2018/2018-02/the-model.html
Affine Endeavour: Estimating a Joint Model of the Nominal and Real Term Structures of Interest Rates in Australia
1 Feb 2018
RDP
2018-02
Expectations for real interest rates, particularly a long way into the future, provide information about the economy's expected potential growth rate and the neutral real interest rate: the real rate ... As these reflect expectations of real short-term
https://www.rba.gov.au/publications/rdp/2018/2018-02/full.html
Appendix E: Estimated Forward Rates for Reduced Sample
27 Feb 2018
RDP
2018-02
RDP 2018-02: Affine Endeavour: Estimating a Joint Model of the Nominal and Real Term Structures of Interest Rates in Australia Appendix E: Estimated Forward Rates for Reduced Sample. ... x-year-ahead. Figure E2: Expected Future Real Interest Rates. x-year
https://www.rba.gov.au/publications/rdp/2018/2018-02/appendix-e.html
Conclusion
27 Feb 2018
RDP
2018-02
RDP 2018-02: Affine Endeavour: Estimating a Joint Model of the Nominal and Real Term Structures of Interest Rates in Australia 6. ... The model suggests that expected real rates a number of years in the future, a market-based measure of the neutral real
https://www.rba.gov.au/publications/rdp/2018/2018-02/conclusion.html
Appendix F: Estimated Forward Rates for the Unfiltered Model
27 Feb 2018
RDP
2018-02
RDP 2018-02: Affine Endeavour: Estimating a Joint Model of the Nominal and Real Term Structures of Interest Rates in Australia Appendix F: Estimated Forward Rates for the Unfiltered Model. ... x-year-ahead. Figure F2: Expected Future Real Interest Rates.
https://www.rba.gov.au/publications/rdp/2018/2018-02/appendix-f.html
Introduction
27 Feb 2018
RDP
2018-02
Expectations for real interest rates, particularly a long way into the future, provide information about the economy's expected potential growth rate and the neutral real interest rate: the real rate ... The results suggest that medium- to long-term
https://www.rba.gov.au/publications/rdp/2018/2018-02/introduction.html
Results
27 Feb 2018
RDP
2018-02
The implied steady-state rates of one-period inflation, nominal and real interest rates are all near their sample averages, at around 2.7 per cent, 4 per cent and 2 ... As these reflect expectations of real short-term interest rates in the relatively
https://www.rba.gov.au/publications/rdp/2018/2018-02/results.html
Affine Endeavour: Estimating a Joint Model of the Nominal and Real Term Structures of Interest Rates in Australia
1 Feb 2018
RDP
2018-02
Research Discussion Paper – RDP 2018-02 Affine Endeavour: Estimating a Joint Model of the Nominal and Real Term Structures of Interest Rates in Australia.
https://www.rba.gov.au/publications/rdp/2018/2018-02/sections.html
Appendix A: The Affine Term Structure Model
27 Feb 2018
RDP
2018-02
RDP 2018-02: Affine Endeavour: Estimating a Joint Model of the Nominal and Real Term Structures of Interest Rates in Australia Appendix A: The Affine Term Structure Model. ... t. 1. ; for any random variable Z. t. 1. ,. where. without a superscript is
https://www.rba.gov.au/publications/rdp/2018/2018-02/appendix-a.html