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
Data Description
21 Jun 2023
RDP
2023-05
To examine the impact of interest rates on banks' profitability, we rely on confidential bank-level data. ... NIMs and ROAs against the change in interest rates for the mean bank in all countries.
https://www.rba.gov.au/publications/rdp/2023/2023-05/data-description.html
The Impact of Interest Rates on Bank Profitability: A Retrospective Assessment Using New Cross-country Bank-level Data
21 Jun 2023
RDP
2023-05
Given the stock of variable-rate loans is larger than the flow, lower interest rates are expected to lower provisions. ... With lower short-term interest rates compressing NIMs, banks reacted by increasing loan volumes, which were funded at the MRO rate.
https://www.rba.gov.au/publications/rdp/2023/2023-05/full.html
Analytical Framework
21 Jun 2023
RDP
2023-05
on the interaction term r. t. low. t. indicates the differential impact a change in the short-term rate has on the profitability of smaller banks when interest rates are low. ... A longer period of low interest rates could be expected to increase the
https://www.rba.gov.au/publications/rdp/2023/2023-05/analytical-framework.html