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
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 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 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
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
Risk Effects Versus Monetary Effects in the Determination of Short-term Interest Rates
19 Nov 2012
RDP
PDF
451KB
that the real interest rate is expressed as a deviation from a steady state. ... of these real interest rates can only be reconciled with the pure consumption.
https://www.rba.gov.au/publications/rdp/1987/pdf/rdp8708.pdf
Affine Endeavour: Estimating a Joint Model of the Nominal and Real Term Structures of Interest Rates in Australia
22 Feb 2018
RDP
PDF
1672KB
policy. Expectations for real interest rates, particularly a long way into the future, provide. ... rates, which some use as a measure of the neutral real interest rate, have declined somewhat over.
https://www.rba.gov.au/publications/rdp/2018/pdf/rdp2018-02.pdf
Australia’s Real Exchange Rate – Is it Explained by the Terms of Trade or by Real Interest Differentials?
30 Nov 2009
RDP
PDF
530KB
These graphs provide some evidence that in the most recent period, relatively high Australian real interest rates have tended to keep the real exchange rate high. ... Mishkin (1987) agrees with their conclusions and states even more strongly that
https://www.rba.gov.au/publications/rdp/1991/pdf/rdp9108.pdf
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
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
Firms’ Price-setting Behaviour: Insights from Earnings Calls
6 Nov 2023
RDP
PDF
1677KB
about our topics of interest. A subset of forward-looking indices is also developed. ... H2: the indices should have a strong contemporaneous or leading relationship with similar real-.
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-06.pdf