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.
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Introduction
19 Dec 2023
RDP
2023-09
The key theoretical channels are well documented. A reduction of the policy interest rate stimulates investment by: increasing aggregate demand; lowering the cost of investment (e.g. ... investment. Indeed, a negative relationship between investment and
https://www.rba.gov.au/publications/rdp/2023/2023-09/introduction.html
References
19 Dec 2023
RDP
2023-09
Hambur J and G La Cava (2018), ‘Do Interest Rates Affect Business Investment? ... Lane K and T Rosewall (2015), ‘Firms' Invesment Decisions and Interest Rates’, RBA Bulletin, June, pp 1–7.
https://www.rba.gov.au/publications/rdp/2023/2023-09/references.html
Are Inflationary Shocks Regressive? A Feasible Set Approach
19 Dec 2023
Research Workshop
PDF
842KB
RBA Workshop 2023
https://www.rba.gov.au/publications/workshops/research/2023/pdf/rba-workshop-2023-del-canto-grigsby-qian-walsh.pdf
Competition and the Phillips Curve
19 Dec 2023
Research Workshop
PDF
833KB
RBA Workshop 2023
https://www.rba.gov.au/publications/workshops/research/2023/pdf/rba-workshop-2023-fujiwara-matsuyama.pdf
Optimal Monetary Policy when Expectations are Rational, Fixed, Learned, or Anything in Between
19 Dec 2023
Research Workshop
PDF
410KB
RBA Workshop 2023
https://www.rba.gov.au/publications/workshops/research/2023/pdf/rba-workshop-2023-presentation-brassil.pdf
Exchange Rate Disconnect Revisited
19 Dec 2023
Research Workshop
PDF
4777KB
RBA Workshop 2023
https://www.rba.gov.au/publications/workshops/research/2023/pdf/rba-workshop-2023-chahrour-cormun-de-leo-guerron-quintana-valchev.pdf
Effect on Expectations with Survey Data
19 Dec 2023
RDP
2023-09
Taken together, these findings suggest that firms' expectations are largely based on current investment and conditions, rather than reflecting future conditions and how interest rates will affect those conditions. ... Whether or not this finding has
https://www.rba.gov.au/publications/rdp/2023/2023-09/effect-on-expectations-with-survey-data.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
Optimal Size and Composition of Government Spending in Small Open Economies
19 Dec 2023
Research Workshop
PDF
1966KB
RBA Workshop 2023
https://www.rba.gov.au/publications/workshops/research/2023/pdf/rba-workshop-2023-du-gomis-porqueras-moslehi-tran.pdf
Early Pension Withdrawal as Stimulus
19 Dec 2023
Research Workshop
PDF
882KB
RBA Workshop 2023
https://www.rba.gov.au/publications/workshops/research/2023/pdf/rba-workshop-2023-hamilton-liu-miranda-pinto-sainsbury.pdf