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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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MARTIN Has Its Place: A Macroeconometric Model of the Australian Economy

1 Aug 2019 RDP 2019-07
Alexander Ballantyne, Tom Cusbert, Richard Evans, Rochelle Guttmann, Jonathan Hambur, Adam Hamilton, Elizabeth Kendall, Rachael McCririck, Gabriela Nodari and Daniel Rees
Examples include interest rates, the exchange rate, the expenditure components of real GDP, labour market variables and inflation. ... We proxy for the latter with the real mortgage interest rate, which captures the tendency for loan-to-valuation ratios
https://www.rba.gov.au/publications/rdp/2019/2019-07/full.html
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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

The Australian Economy and Financial Markets

2 May 2024 Chart Pack PDF 5792KB
The Australian Economy and Financial Markets - May 2024
https://www.rba.gov.au/chart-pack/pdf/chart-pack.pdf

Short-term Interest Rates, Weekly Money Announcements and Rational Forecasts

1 May 1986 RDP 8602
Robert G. Trevor
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/1986/8602.html
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The Consequences of Low Interest Rates for the Australian Banking Sector

21 Dec 2022 RDP 2022-08
Anthony Brassil
In jurisdictions with a negative policy rate, retail deposit interest rates remained close to zero (albeit negative). ... rate. So cash rate reductions remain an effective policy tool during large downturns and at low interest rates.
https://www.rba.gov.au/publications/rdp/2022/2022-08/full.html
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The Effect of Steady Inflation on Interest Rates and the Real Exchange Rate in a World with Free Capital Flows

18 Apr 2007 RDP PDF 383KB
When this happens, foreign lenders will be aware of two things: that domestic real interest rates are relatively high, and that the domestic real exchange rate is over-valued (compared with ... In equilibrium, Dl = Dc = 0, and these conditions allow the
https://www.rba.gov.au/publications/rdp/1991/pdf/rdp9101.pdf

Appendix F: Real Exchange Rate Shocks are AR(1)

1 Jun 1993 RDP 9307
David W.R. Gruen and Marianne C. Gizycki
RDP 9307: Explaining Forward Discount Bias: Is it Anchoring? Appendix F: Real Exchange Rate Shocks are AR(1). ... Firstly, real exchange rate shocks are uncorrelated with the forward discount by assumption.
https://www.rba.gov.au/publications/rdp/1993/9307/appendix-f.html
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Monthly Movements in the Australian Dollar and Real Short-Term Interest Differentials: An Application of the Kalman Filter

1 Nov 1991 RDP 9111
Alison Tarditi and Gordon Menzies
Research Discussion Paper – RDP 9111 Monthly Movements in the Australian Dollar and Real Short-Term Interest Differentials: An Application of the Kalman Filter.
https://www.rba.gov.au/publications/rdp/1991/9111/
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The Rise in Household Liquidity

10 Nov 2021 RDP 2021-10
Gianni La Cava and Lydia Wang
Specifically, disinflation and falling real interest rates have increased housing prices and housing deposits, and have also made it easier to amortise existing debt. ... The relevant interest rate is derived from RBA statistical table ‘F5 Indicator
https://www.rba.gov.au/publications/rdp/2021/2021-10/full.html
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Appendix: Data Sources and Methods

1 Aug 1988 RDP 8805
Michele Bullock, Dirk Morris and Glenn Stevens
Bulletin. ; historical series are available on the Bulletin Database. The monthly data are averaged for each quarter, to form a better representation of the average interest rate prevailing in the quarter. ... Data for real interest rates are calculated
https://www.rba.gov.au/publications/rdp/1988/8805/appendix.html
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