Search: Nominal interest rate
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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.
Search Results
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
References
21 Dec 2022
RDP
2022-08
Balloch C, Y Koby and M Ulate (2022), ‘Making Sense of Negative Nominal Interest Rates’, Federal Reserve Bank of San Francisco Working Paper 2022-12. ... Lopez JA, AK Rose and MM Spiegel (2020), ‘Why Have Negative Nominal Interest Rates Had Such a
https://www.rba.gov.au/publications/rdp/2022/2022-08/references.html
The Low Interest Rate Environment
21 Dec 2022
RDP
2022-08
Download the Paper 1.6. MB. Before exploring the consequences of low interest rates, a brief digression to frame what is typically meant by the ‘low interest rate environment’. ... Rather than referring to rates that are temporarily low, the low
https://www.rba.gov.au/publications/rdp/2022/2022-08/the-low-interest-rate-environment.html