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RBA Glossary definition for Nominal interest rate

Nominal interest rate – The nominal interest rate refers to the cost of borrowing money before adjustment for inflation i.e. it includes compensation for the expected erosion of the value of the borrowed funds due to inflation. It is the cost visible to the borrower, and is composed of the real interest rate plus inflation.

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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Nominal Interest Rates and Inflation: 1961–1989

1 Jun 1991 RDP 9104
Michele Bullock and Mark Rider
Over the 1975–79 period, the relationship between nominal interest rates and inflation strengthened. ... b) Average nominal interest rate: For each period an average of monthly data on interest rates is calculated.
https://www.rba.gov.au/publications/rdp/1991/9104/nominal-interest-rates-and-inflation-1961-1989.html

Cross-Country Relationship Between Interest Rates and Inflation over Three Decades

1 Jun 1991 RDP 9104
Michele Bullock and Mark Rider
Research Discussion Paper – RDP 9104 Cross-Country Relationship Between Interest Rates and Inflation over Three Decades.
https://www.rba.gov.au/publications/rdp/1991/9104/

Some Hypotheses

1 Jun 1991 RDP 9104
Michele Bullock and Mark Rider
Fisher (1930) decomposed the nominal interest rate (i. t. ) into two parts: a real component (r. ... Nominal interest rates will hence reflect movements in inflationary expectations one-for-one.
https://www.rba.gov.au/publications/rdp/1991/9104/some-hypotheses.html

Introduction

1 Jun 1991 RDP 9104
Michele Bullock and Mark Rider
The implication is that a country will have higher nominal interest rates if inflation (more precisely, expected inflation) is high than if it is low. ... An alternative reason why nominal interest rates might be expected to be higher in high inflation
https://www.rba.gov.au/publications/rdp/1991/9104/introduction.html

Appendix 2: Regression Equations

1 Jun 1991 RDP 9104
Michele Bullock and Mark Rider
RDP 9104: Cross-Country Relationship Between Interest Rates and Inflation over Three Decades Appendix 2: Regression Equations. ... 4.75. (0.57). 0.14. (0.11). 0.09. b New Zealand data on inflation (and hence the real interest rate) is adjusted for the
https://www.rba.gov.au/publications/rdp/1991/9104/appendix-2.html

Conclusion

1 Jun 1991 RDP 9104
Michele Bullock and Mark Rider
RDP 9104: Cross-Country Relationship Between Interest Rates and Inflation over Three Decades 5. ... Download the Paper 929. KB. Although it is relatively well known that nominal interest rates tend to be higher in high inflation countries, it is less
https://www.rba.gov.au/publications/rdp/1991/9104/conclusion.html