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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Short-term Interest Rates, Weekly Money Announcements and Rational Forecasts
1 May 1986
RDP
8602
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 Smoothing of Official Interest Rates
7 Dec 2006
Conferences
PDF
190KB
RBA Conference Volume 1997
https://www.rba.gov.au/publications/confs/1997/pdf/lowe-ellis.pdf
The Consequences of Low Interest Rates for the Australian Banking Sector
21 Dec 2022
RDP
2022-08
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
Expectations and the Neutrality of Interest Rates
27 Nov 2023
Conferences
PDF
477KB
RBA Annual Conference 2023
https://www.rba.gov.au/publications/confs/2023/pdf/rba-conference-2023-cochrane.pdf
Financial-asset Prices and Monetary Policy: Theory and Evidence | Conference – 1997
21 Jul 1997
Conferences
According to Equation (2), aggregate demand depends negatively on the expected real interest rate (r. ... Indeed, simulations with macroeconometric models suggest that exchange-rate changes have more immediate effects on real economic activity than
https://www.rba.gov.au/publications/confs/1997/smets.html
Discussion of Gazing at r*: A Hysteresis Perspective
29 Dec 2022
Conferences
PDF
799KB
RBA Annual Conference 2022
https://www.rba.gov.au/publications/confs/2022/pdf/rba-conference-2022-beaudry-kartashova-meh-discussion.pdf
Appendix F: Real Exchange Rate Shocks are AR(1)
1 Jun 1993
RDP
9307
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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The Rise in Household Liquidity
10 Nov 2021
RDP
2021-10
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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Discussion of Inflation and Interest Rates
20 Dec 2023
Conferences
PDF
150KB
RBA Annual Conference 2023
https://www.rba.gov.au/publications/confs/2023/pdf/rba-conference-2023-cochrane-discussion.pdf