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.
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Three Decades of Real Interest Rates
17 Jun 2003
Bulletin
PDF
91KB
Real interest rates have varied widely overrecent decades. Calculated in the conventionalmanner – that is, deflating the nominal interestrate by the rate of inflation over the previous12 months (Graphs 2 and 3) – ... 5. 0. 5. 10. 15. -10. -5. 0. 5. 10
https://www.rba.gov.au/publications/bulletin/1991/oct/pdf/bu-1091-2.pdf
The Economics of Low Interest Rates
29 Dec 2022
Conferences
PDF
1053KB
RBA Annual Conference 2022
https://www.rba.gov.au/publications/confs/2022/pdf/rba-conference-2022-mian-presentation.pdf
Semi-Annual Statement on Monetary Policy
31 Jul 2003
SMP
PDF
25KB
Proxies for real interest rates can be moreuseful over long periods, particularly wherethere are pronounced differences in theprevailing inflation rate and large movementsin nominal interest rates and inflationexpectations. ... It takes a long time
https://www.rba.gov.au/publications/smp/1997/may/pdf/box-4.pdf
Statement on Monetary Policy
30 Jul 2003
SMP
PDF
47KB
There are a number of measurement issuesthat arise in calculating real interest rates.There is no unique measure of this conceptbecause interest rates vary depending onsuch factors as the maturity and ... Another important issue is thatmeasures of real
https://www.rba.gov.au/publications/smp/2001/feb/pdf/box-b.pdf
Monthly Movements in the Australian Dollar and Real Short-term Interest Differentials: An Application of the Kalman Filter
19 Apr 2007
RDP
PDF
487KB
In particular, the relationship between the real exchange rate and real interest rates has fallen under scrutiny since the late 1980s. ... One way of accessing real interest rate data is to use long-term (typically ten-year) real interest rates across
https://www.rba.gov.au/publications/rdp/1991/pdf/rdp9111.pdf
Gazing at r*: A Hysteresis Perspective
29 Dec 2022
Conferences
PDF
1668KB
RBA Annual Conference 2022
https://www.rba.gov.au/publications/confs/2022/pdf/rba-conference-2022-beaudry-kartashova-meh.pdf
The Smoothing of Official Interest Rates
7 Dec 2006
Conferences
PDF
190KB
RBA Conference Volume 1997
https://www.rba.gov.au/publications/confs/1997/pdf/lowe-ellis.pdf
The Cross-country Relationship between Interest Rates and Inflation over Three Decades
6 Jul 2007
RDP
PDF
928KB
Since the level of real interest rates will also impact on the rate of inflation,. ... New Zealand and the UK have experienced a rise in inflation, despite running pre-tax real interest rates above the world rate.
https://www.rba.gov.au/publications/rdp/1991/pdf/rdp9104.pdf
The Movement of Interest Rates
18 Oct 2001
Bulletin
PDF
78KB
Overtime, if that were maintained, it would causeinflation to rise, and, with a fixed nominalinterest rate, the real interest rate woulddecline, thus leading to further increases indemand and inflation. ... If, on the other hand, someone is arguingfor
https://www.rba.gov.au/publications/bulletin/2001/oct/pdf/bu-1001-3.pdf
Box C: Interest Rate Risk in the Australian Financial System
10 Feb 2020
FSR
April 2018
PDF
638KB
https://www.rba.gov.au/publications/fsr/2018/apr/pdf/box-c.pdf