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.
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The Global Financial Environment
20 Oct 2016
FSR
– October 2016
In the major advanced economies, banking system profitability remains under pressure given low rates of nominal growth and the low interest rate environment. ... lower production costs (including the cost of debt service due to the current low interest
https://www.rba.gov.au/publications/fsr/2016/oct/global-fin-env.html
Household and Business Balance Sheets
10 Sep 2012
FSR
– September 2012
1990s and 2000s, because that earlier period was one of adjustment to the structural decrease in nominal interest rates and liberalisation of the banking system. ... Reflecting businesses' low leverage, solid profitability and below-average interest rates
https://www.rba.gov.au/publications/fsr/2012/sep/house-bus-bal-sheet.html
Business and Household Finances
10 Sep 2013
FSR
– September 2013
around 21 months of total scheduled repayments at current interest rates (Graph 3.12). ... An increase in housing market activity more generally is not surprising given reductions in interest rates.
https://www.rba.gov.au/publications/fsr/2013/sep/bus-house-fin.html
Box B: Measurement of Housing Arrears
10 Sep 2009
FSR
– September 2009
Sharp changes in interest rates can also distort reported arrears rates. ... When variable mortgage interest rates fall, the required repayment also declines.
https://www.rba.gov.au/publications/fsr/2009/sep/box-b.html
The Global Financial Environment
10 Sep 2012
FSR
– September 2012
Property prices have also risen significantly in a few economies, especially where exchange rate regimes have limited the scope to raise interest rates, prompting authorities to introduce a range of other ... The larger allowable discount on Chinese banks
https://www.rba.gov.au/publications/fsr/2012/sep/global-fin-env.html
The Global Financial Environment
10 Mar 2009
FSR
– March 2009
While central banks have lowered policy interest rates significantly, a widening in risk spreads has limited the extent to which reductions have been passed onto many lending rates. ... Though the initial rise in US housing loan arrears mainly reflected
https://www.rba.gov.au/publications/fsr/2009/mar/global-fin-env.html
Household and Business Balance Sheets
10 Sep 2008
FSR
– September 2008
Since end July 2007, interest rates on large and small business variable-rate loans have increased by around 140 basis points. ... Survey data, as well as liaison with businesses, indicate there has been an increase in the share of firms that view the
https://www.rba.gov.au/publications/fsr/2008/sep/house-bus-bal-sheet.html
The Macroeconomic and Financial Environment
10 Mar 2006
FSR
– March 2006
On the demand side, the lower nominal interest rates associated with lower inflation have allowed households to take on larger debts. ... The effect of interest rate increases in recent years has also been partly offset by a contraction in lending margins
https://www.rba.gov.au/publications/fsr/2006/mar/mac-fin-env.html
Household and Business Balance Sheets
10 Mar 2010
FSR
– March 2010
is likely to have reflected the high deposit interest rates that have been on offer. ... The recent levelling out in housing loan arrears rates also reflects the improved economic and financial conditions discussed above, including lower household
https://www.rba.gov.au/publications/fsr/2010/mar/house-bus-bal-sheet.html
Household and Business Balance Sheets
10 Sep 2010
FSR
– September 2010
Together, these developments mean that the household sector remains sensitive to possible future negative shocks to incomes, interest rates and housing prices. ... their disposable income in 2008 (when interest rates were higher than at present) (Graph 65
https://www.rba.gov.au/publications/fsr/2010/sep/house-bus-bal-sheet.html