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
Is Monetary Policy Less Effective When Interest Rates Are Persistently Low? | Conference – 2017
16 Mar 2017
Conferences
Conventional consumption theory suggests that low real interest rates depress saving and boost consumption through intertemporal substitution. ... When the real interest rate is low, the returns from postponing consumption are also low.
https://www.rba.gov.au/publications/confs/2017/borio-hofmann.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
Annex: Real Interest Parity
1 Mar 1992
RDP
9203
where E(R. mt. ) and. are the ex ante or expected domestic and foreign real interest rates. ... The major practical problem here is that ex ante real interest rates are not directly observable.
https://www.rba.gov.au/publications/rdp/1992/9203/annex-real-interest-parity.html
See 10 more results from "RDP 9203"
Bulletin
18 Apr 2024
Bulletin
Insights into the economy and financial system from teams throughout the Reserve Bank of Australia
https://www.rba.gov.au/publications/bulletin/
Submissions
8 May 2024
Submissions
Index of Documents commissioned by or prepared for Parliament, its committees, and other public inquiries
https://www.rba.gov.au/publications/submissions/
The Role of the Exchange Rate in Monetary Policy – the Experience of Other Countries | Conference – 1993
12 Jul 1993
Conferences
Then (real) interest rates and intervention target the FEER, whilst fiscal policy is used to target the nominal demand objective. ... 0 schedule would slope forward, as shown. This system is not stable (see Appendix C); but if nominal interest rates rise
https://www.rba.gov.au/publications/confs/1993/artis.html
Monetary Targeting: The International Experience | Conference – 1989
20 Jun 1989
Conferences
information on which policy is based (. ), and the elasticity of real demand with respect to the real interest rate. ... The mechanism by which policy works can be thought of as being through the effect of the real interest rate on real demand.
https://www.rba.gov.au/publications/confs/1989/edey.html
3.3 Risk Management
19 Oct 2023
RBA Annual Report
– October 2023
Risk Management | Reserve Bank of Australia Annual Report – October 2023
https://www.rba.gov.au/publications/annual-reports/rba/2023/risk-management.html
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
Financial Stability in a Low Interest Rate Environment: An Australian Case Study | Conference – 2017
16 Mar 2017
Conferences
from a decline in the equilibrium real interest rate. ... A decline in real interest rates could occur because trend economic growth has declined, but that is not a scenario in which an increase in household indebtedness would be regarded as
https://www.rba.gov.au/publications/confs/2017/ellis-littrell.html