Search: Nominal interest rate
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.
Search Results
Affine Endeavour: Estimating a Joint Model of the Nominal and Real Term Structures of Interest Rates in Australia
27 Feb 2018
RDP
2018-02
financial markets, inflation, interest rates, modelling, money. We outline a ‘workhorse’ affine term structure model of nominal and real interest rates in Australia. ... The model allows us to decompose observed yields paid on nominal and
https://www.rba.gov.au/publications/rdp/2018/2018-02.html
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Nominal Interest Rates and Inflation: 1961–1989
1 Jun 1991
RDP
9104
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
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Appendix
1 Dec 1989
RDP
8908
i. t. =. k-period domestic nominal interest rate in period t; and. ... i. t. =. k-period foreign interest rate in period t. Equation (7) states that the differential between k-period nominal interest rates equals the expected change in the exchange rate
https://www.rba.gov.au/publications/rdp/1989/8908/appendix.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
1 Feb 1991
RDP
9101
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/1991/9101.html
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The Neutral Interest Rate
15 Sep 2017
Bulletin
– September 2017
Central banks monitor the neutral interest rate for a number of reasons, a key one being that it provides a benchmark for assessing the stance of monetary policy. This article describes the determinants of the neutral interest rate and discusses its
https://www.rba.gov.au/publications/bulletin/2017/sep/2.html
Bulletin
18 Apr 2024
Bulletin
Insights into the economy and financial system from teams throughout the Reserve Bank of Australia
https://www.rba.gov.au/publications/bulletin/
Box C: Interest Rate Risk in the Australian Financial System
10 Apr 2018
FSR
– April 2018
real interest rates rose (by the equivalent of one-quarter of the current nominal risk-free interest rate) or if nominal interest rates increased (by 125 basis points) because of a ... Graph C3. In contrast, an increase in nominal interest rates arising
https://www.rba.gov.au/publications/fsr/2018/apr/box-c.html
Housing Prices, Mortgage Interest Rates and the Rising Share of Capital Income in the United States
9 Jun 2016
RDP
2016-04
In effect, I argue that the fall in nominal interest rates over the 1980s and 1990s raised the demand for housing and pushed up housing prices and rents (relative to ... I estimate that the long-term decline in interest rates can explain more than half
https://www.rba.gov.au/publications/rdp/2016/2016-04.html
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Firms' Investment Decisions and Interest Rates
18 Jun 2015
Bulletin
– June 2015
Firms typically evaluate investment opportunities by calculating expected rates of return and the payback period (the time taken to recoup the capital outlay). Liaison and survey evidence indicate that Australian firms tend to require expected
https://www.rba.gov.au/publications/bulletin/2015/jun/1.html
Is Monetary Policy Less Effective When Interest Rates Are Persistently Low? | Conference – 2017
16 Mar 2017
Conferences
Finally, just as in the case of bank lending, nominal interest rates may matter quite independently of real rates. ... illusion or specific transmission channels working through, or proxied by, the nominal interest rate.
https://www.rba.gov.au/publications/confs/2017/borio-hofmann.html