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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Does Monetary Policy Affect Non-mining Business Investment in Australia? Evidence from BLADE
7 Jan 2024
RDP
PDF
1715KB
A. reduction of the policy interest rate stimulates investment by: increasing aggregate demand;. ... change on investment. Indeed, a negative relationship between investment and interest rates is.
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-09.pdf
Does Monetary Policy Affect Non-mining Business Investment in Australia? Evidence from BLADE
22 Dec 2023
RDP
2023-09
nmbi: non-mining business investment – ABS national accounts. btcs: Beckers (2020) shock measure, not accounting for cash rate expectations. ... cr: cash rate changes – RBA statistical table F1.1 Interest Rates and Yields – Money Market – Monthly.
https://www.rba.gov.au/publications/rdp/2023/2023-09/read-me.html
Results with Tax Data on Actual Investment
19 Dec 2023
RDP
2023-09
For example, survey evidence suggests that firms' hurdle rates do not respond to interest rate changes (Lane and Rosewall 2015; Edwards and Lane 2021). ... It could also be the case that the surveyed and actual responses differ or that hurdle rates do
https://www.rba.gov.au/publications/rdp/2023/2023-09/results-with-tax-data-on-actual-investment.html
Read me file for Does Monetary Policy Affect Non-mining Business Investment in Australia? Evidence from BLADE
10 Dec 2023
RDP
PDF
160KB
RDP 2023-09 supplementary information
https://www.rba.gov.au/publications/rdp/2023/2023-09/rdp-2023-09-read-me.pdf
Does Monetary Policy Affect Non-mining Business Investment in Australia? Evidence from BLADE
21 Sep 2023
RDP
2023-09
investment. Indeed, a negative relationship between investment and interest rates is hard to find in aggregate time series data (e.g. ... For example, survey evidence suggests that firms' hurdle rates do not respond to interest rate changes (Lane and
https://www.rba.gov.au/publications/rdp/2023/2023-09/full.html
Macrofinancial Stress Testing on Australian Banks
13 Sep 2023
RDP
PDF
1940KB
It also enables the scenario to incorporate changes in interest rates or fiscal policy, if desired. ... 13 To simplify the modelling, we assume interest rates on business loans do not change.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-03.pdf
References
21 Jun 2023
RDP
2023-05
Brunnermeier MK and Y Koby (2018), ‘The Reversal Interest Rate’, NBER Working Paper No 25406. ... Lopez JA, AK Rose and MM Spiegel (2020), ‘Why Have Negative Nominal Interest Rates Had Such a Small Effect on Bank Performance?
https://www.rba.gov.au/publications/rdp/2023/2023-05/references.html
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The Impact of Interest Rates on Bank Profitability: A Retrospective Assessment Using New Cross-country Bank-level Data
8 Jun 2023
RDP
PDF
1310KB
term rate has on the profitability of smaller banks when interest rates are low. ... to increase the negative effect of lowering rates on profitability because interest rate hedges become.
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-05.pdf
Appendix A: Affine Term Structure Model
12 May 2023
RDP
2023-04
In the model the one-period nominal interest rate r. t. is given by. ... Consistent with ACM, our factors are the first K principal components from a panel of nominal interest rates.
https://www.rba.gov.au/publications/rdp/2023/2023-04/appendix-a.html
See 14 more results from "RDP 2023-04"
Read me file for Can We Use High-frequency Yield Data to Better Understand the Effects of Monetary Policy and Its Communication? Yes and No!
3 May 2023
RDP
PDF
247KB
RDP 2023-04 supplementary information
https://www.rba.gov.au/publications/rdp/2023/2023-04/rdp-2023-04-read-me.pdf