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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Some Evolving Questions
21 Nov 2017
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203KB
Ialso suggested that the normal level of interest rates might be lower than it was in the past. ... This is especiallyso when this debt is taken on in an unusually low-interest rate environment.
https://www.rba.gov.au/speeches/2017/pdf/sp-gov-2017-11-21.pdf
The Next Chapter
25 Sep 2017
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167KB
Investment strategies that looked sensible wheninterest rates were very low tend not to look so good when interest rates are higher. ... A rise in global interest rates has no automatic implications for us here in Australia.
https://www.rba.gov.au/speeches/2017/pdf/sp-gov-2017-09-21.pdf
3/21/2019 Property, Debt and Financial Stability | Speeches | ...
21 Mar 2019
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426KB
In particular, a structural decline in the level of nominal interest ratesand deregulation have eased credit constraints and increased loan serviceability. ... APRA required banks to tighten their lending practices in a number of areas,including interest
https://www.rba.gov.au/speeches/2019/pdf/sp-ag-2019-03-20.pdf
Prudent Mortgage Lending Standards Help Ensure Financial Stability
22 Feb 2012
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Rather, it was the proportion of new lending that was interest-only loans. ... And have both the borrower and lender allowed enough of a margin to cope with interest rate changes?
https://www.rba.gov.au/speeches/2012/pdf/sp-so-230212.pdf
Exchange Rate and Crises
27 Feb 2001
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borrowing atlow interest rates in Japan and lending at high rates elsewhere in Asia.7. ... None of this, of course, argues for low interest rates - but it is a reminder that simplemanipulation of interest rates will not always protect an exchange rate.
https://www.rba.gov.au/speeches/1998/pdf/sp-dg-160198.pdf
Some Features of the Australian Fixed Income Market
7 Jun 2018
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548KB
Third, interest rates onwholesale deposits tend to be closely linked to BBSW rates. ... This aligns the nature of the rates for their funding with those of theirassets (which are largely variable interest rate loans).
https://www.rba.gov.au/speeches/2018/pdf/sp-ag-2018-06-06.pdf
Twenty-five Years of Inflation Targeting in Australia
26 Apr 2018
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237KB
higher nominal interest rate structure. ... We also need to question whether the real interest rate structure has shifted lower permanently, because of permanently lower trend growth say, which would also shift down the nominal rate structure
https://www.rba.gov.au/speeches/2018/pdf/sp-dg-2018-04-12.pdf
Inflation and the Monetary Policy Framework
8 Sep 2022
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775KB
Speech - 2022
https://www.rba.gov.au/speeches/2022/pdf/sp-gov-2022-09-08.pdf
10/09/2018 The Evolution of Household Sector Risks | Speeches ...
10 Sep 2018
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276KB
The first is thestructural decline in the level of nominal interest rates over this period, partly reflecting a decline ininflation but also a decline in bank interest rate margins as a ... as increases in interest rates.Interest payments as a share of
https://www.rba.gov.au/speeches/2018/pdf/sp-ag-2018-09-10.pdf
Housing and the Economy
17 Oct 2019
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to the shift down in the nominal interest rate structure. ... This has coincidedwith the lower cash rate and mortgage rates, as well as APRA's recent changes to the interest ratethreshold.
https://www.rba.gov.au/speeches/2019/pdf/sp-dg-2019-10-17.pdf