Search: Real interest rate

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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.

Search Results

Do Monetary Policy and Economic Conditions Impact Innovation? Evidence from Australian Administrative Data

15 Feb 2024 RDP 2024-01
Omer Majeed, Jonathan Hambur and Robert Breunig
policy is constrained by the effective lower bound on interest rates and therefore cannot offset economic downturns. ... As such, it might appear that higher interest rates lead to more innovation when both are moving with economic conditions.
https://www.rba.gov.au/publications/rdp/2024/2024-01/full.html
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Does Monetary Policy Affect Non-mining Business Investment in Australia? Evidence from BLADE

22 Dec 2023 RDP 2023-09
gdp: real gross domestic product level – ABS national accounts. gdp: real gross national expenditure level – ABS national accounts. ... cr: cash rate changes – RBA statistical table F1.1 Interest Rates and Yields – Money Market – Monthly.
https://www.rba.gov.au/publications/rdp/2023/2023-09/read-me.html

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

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

The Evolution of Consumer Payments in Australia: Results from the 2022 Consumer Payments Survey

27 Nov 2023 RDP 2023-08
Tanya Livermore, Jack Mulqueeney, Thuong Nguyen and Benjamin Watson
By comparison, only around three-quarters of people use deposit services, and a smaller share of people rate these as convenient relative to withdrawal services. ... The high rate of card acceptance by merchants partly reflects the ubiquity of card
https://www.rba.gov.au/publications/rdp/2023/2023-08/full.html

Wages and concentration

20 Nov 2023 RDP 2023-02
Of particular interest, Column 3 shows the results when accounting both for market- and firm-level concentration. ... as measured by the national or state-level unemployment rate (Columns 3 and 4).
https://www.rba.gov.au/publications/rdp/2023/2023-02/wages-and-concentration.html

Identification and Inference under Narrative Restrictions

26 Oct 2023 RDP 2023-07
Raffaella Giacomini, Toru Kitagawa and Matthew Read
This is undesirable when conducting likelihood-based inference, because it represents a loss of information about the parameter of interest. ... If the parameter of interest is an impulse response to the jth structural shock,.
https://www.rba.gov.au/publications/rdp/2023/2023-07/full.html
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Adoption of Emerging Digital General-purpose Technologies: Determinants and Effects

21 Oct 2023 RDP 2023-10
Jonathan Hambur
We look for mentions of words related to each of the technologies of interest in the text. ... The coefficients of interest are the betas related to the lags and leads.
https://www.rba.gov.au/publications/rdp/2023/2023-10/full.html
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