Search: Nominal interest rate

Sort by: Relevance Date
1–7 of 7 collapsed search results for Nominal interest rate
Did you mean official interest rates?

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

Inflation and Interest Rates

1 Oct 1989 RDP 8906
Jeremy Smith and David W.R. Gruen
Download the Paper 1.72. MB. Figures 5 and 6 display, respectively, short-term nominal interest rates and 12 month ended CPI inflation rates for seven OECD countries over the period ... j. diff. , is given by. Figure 5. Nominal Interest Rates.
https://www.rba.gov.au/publications/rdp/1989/8906/inflation-and-interest-rates.html

Discussion

1 Oct 1989 RDP 8906
Jeremy Smith and David W.R. Gruen
Because of covered interest parity, when domestic nominal interest rates are higher than world nominal interest rates, the forward rate predicts depreciation of the domestic currency (at a rate which, if ... the gain from higher domestic nominal interest
https://www.rba.gov.au/publications/rdp/1989/8906/discussion.html

Skewness

1 Oct 1989 RDP 8906
Jeremy Smith and David W.R. Gruen
RDP 8906: A Random Walk Around the $A: Expectations, Risk, Interest Rates and Consequences for External Imbalance V. ... The debt/GDP ratio will increase (potentially without bound) if net exports are in deficit (as they are in Australia) and if the
https://www.rba.gov.au/publications/rdp/1989/8906/skewness.html

The Risk Premium

1 Oct 1989 RDP 8906
Jeremy Smith and David W.R. Gruen
RDP 8906: A Random Walk Around the $A: Expectations, Risk, Interest Rates and Consequences for External Imbalance III. ... t 4. f. t, 1 month. ,. Figure 3. Nominal risk premium of the average market participant and the forward rate error.
https://www.rba.gov.au/publications/rdp/1989/8906/risk-premium.html

Introduction

1 Oct 1989 RDP 8906
Jeremy Smith and David W.R. Gruen
The arbitrage condition for a representative US investor can be expressed either in terms of nominal or real interest rates. ... Thus,. where i and r denote the nominal and real interest rates for some asset, S is the nominal $US/$A exchange rate, ΔS is
https://www.rba.gov.au/publications/rdp/1989/8906/introduction.html

Appendix B

1 Oct 1989 RDP 8906
Jeremy Smith and David W.R. Gruen
RDP 8906: A Random Walk Around the $A: Expectations, Risk, Interest Rates and Consequences for External Imbalance Appendix B. ... For all the exchange rates in the two datasets we establish the following results.
https://www.rba.gov.au/publications/rdp/1989/8906/appendix-b.html

Exchange Rate Expectations and the Forward Rate

1 Oct 1989 RDP 8906
Jeremy Smith and David W.R. Gruen
RDP 8906: A Random Walk Around the $A: Expectations, Risk, Interest Rates and Consequences for External Imbalance II. ... From Nov 84 to Dec 85, their market participants expected nominal appreciation of their TWA at an average rate of 4.7% p.a.
https://www.rba.gov.au/publications/rdp/1989/8906/exchange-rate-expectations-and-the-forward-rate.html