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.
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Monetary Targeting: The International Experience | Conference – 1989
20 Jun 1989
Conferences
t. is the log of the price level. R. t. is the nominal interest rate. ... Thus the optimal policy can be defined indifferently as either a real or a nominal interest rate response to the current price level signal.
https://www.rba.gov.au/publications/confs/1989/edey.html
Long-term Interest Rates, Risk Premia and Unconventional Monetary Policy
12 Apr 2011
RDP
2011-02
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/2011/2011-02.html
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The Smoothing of Official Interest Rates | Conference – 1997
21 Jul 1997
Conferences
For instance, in the case where ω=0.05 (the smallest penalty on changing interest rates that we consider), the standard deviation of the quarterly change in the nominal interest rate ... It is not the case that optimal monetary policy involves making
https://www.rba.gov.au/publications/confs/1997/lowe-ellis.html
Bulletin August 2001 – Statement on Monetary Policy
10 Aug 2001
Bulletin
band. The Bank of England has cut interest rates by 1 percentage point this year, taking its policy rate down to 5 per cent. ... However, several other emerging market economies have had to raise interest rates, despite slowing output growth, to counter
https://www.rba.gov.au/publications/bulletin/2001/aug/1.html
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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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/
Simulation Results
1 Nov 1989
RDP
8907
The interesting comparison between this shock and the real interest rate shock is that both lead to a rise in nominal interest rates. ... The important distinction is whether the change in nominal interest rates reflects expected inflation, or a rise in
https://www.rba.gov.au/publications/rdp/1989/8907/simulation-results.html
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Semi-Annual Statement on Monetary Policy
10 May 1997
Bulletin
– May 1997
Graph 9. The housing recovery is being supported by an historically high level of affordability of houses which, in turn, reflects the low level of nominal interest rates. ... Falls in mortgage interest rates detracted 0.5 of a percentage point from the
https://www.rba.gov.au/publications/bulletin/1997/may/1.html
Semi-Annual Statement on Monetary Policy
10 Nov 1998
Bulletin
– November 1998
The move aimed to profit either from a fall in the exchange rate or, more likely, a weakening in the share market as interest rates rose in response to exchange rate ... A similar pattern of short-term interest rates was evident in late August and early
https://www.rba.gov.au/publications/bulletin/1998/nov/1.html
Are Low Interest Rates Deflationary? A Paradox of Perfect-Foresight Analysis
8 Apr 2016
Research Workshop
PDF
664KB
Reserve Bank of Australia Research Workshop 2015: Quantitative Macroeconomics
https://www.rba.gov.au/publications/workshops/research/2015/pdf/rba-workshop-2015-garcia-schmidt-woodford.pdf