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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The Indicators
1 Aug 1988
RDP
8805
The other issue of importance is whether to use a nominal or a real interest rate. ... It is defined as the nominal interest rate less the four-quarter ended change in the consumer price index for the same quarter.
https://www.rba.gov.au/publications/rdp/1988/8805/indicators.html
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Appendix D: Data Sources and Definitions
31 Dec 2003
RDP
2003-12
June 1998 (both available from Table F.1 of the RBA Bulletin, ‘Interest Rates and Yields – Money Market’). ... Constructed from RBA Bulletin Table ‘Advances Classified by Interest Rates’ [1963:M9–1988:M11].
https://www.rba.gov.au/publications/rdp/2003/2003-12/appendix-d.html
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Empirical Estimates
31 Dec 2004
RDP
2004-08
Because the inflation rate is already in the short-run dynamics to capture the effects of relative housing prices discussed above, including both nominal and real interest rates directly would introduce ... Nominal interest rates fell substantially in
https://www.rba.gov.au/publications/rdp/2004/2004-08/empirical-estimates.html
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Estimating the Effects of Monetary Policy in Australia Using Sign-restricted Structural Vector Autoregressions
3 Jan 2023
RDP
2022-09
The intuition is that a linear combination of expansionary demand and supply shocks can result in the nominal interest rate increasing and prices decreasing. ... the identified structural equation for the nominal interest rate is actually a linear
https://www.rba.gov.au/publications/rdp/2022/2022-09/full.html
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Introduction
31 Dec 2006
RDP
2006-02
The goal of this paper is to study monetary policy rules that involve long-term nominal interest rates in these two distinct roles. ... The Fisher decomposition reveals that two terms are crucial for the equilibrium determination of nominal interest rates
https://www.rba.gov.au/publications/rdp/2006/2006-02/introduction.html
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Fan Charts
8 Mar 2017
RDP
2017-01
Finally, the construction and publication of fan charts raises special issues in the case of the federal funds rate because of the effective lower bound on nominal interest rates – a constraint ... Traditionally, zero was viewed as the lowest that
https://www.rba.gov.au/publications/rdp/2017/2017-01/fan-charts.html
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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
Interest Rate Swaps
1 Dec 1994
RDP
9409
The portfolios on which our results are based include both interest rate swaps and forward rate agreements (FRA). ... The first interest payment is determined by a fixed interest rate agreed between the two parties at the inception of the FRA.
https://www.rba.gov.au/publications/rdp/1994/9409/int-rat-swa.html
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Monetary Policy, Equity Markets and the Information Effect
23 Mar 2021
RDP
2021-04
More formally, the nominal interest rate, i. t. , set by the central bank can be represented as:. ... The monetary policy surprises only reflect changes in the expectations of the nominal interest rate, that is, no omitted variable bias.
https://www.rba.gov.au/publications/rdp/2021/2021-04/full.html
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Cost-benefit Analysis of Leaning against the Wind
1 Jul 2019
RDP
2019-05
AUS-M's estimate of the effect of interest rates on the rate of unemployment is slightly stronger than estimates for some other countries. ... When they include real or nominal interest rates in addition to credit growth in their models predicting crises,
https://www.rba.gov.au/publications/rdp/2019/2019-05/full.html
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