Search: Real interest rate

Sort by: Relevance Date
1–5 of 5 collapsed search results for Real interest rate

RBA Glossary definition for Real interest rate

Real interest rate – The real interest rate refers to the cost of borrowing money (i.e. the nominal interest rate) net of inflation. It takes account of the fact that part of the nominal interest that borrowers pay to lenders represents compensation for anticipated inflation. The remaining �real� component better reflects the economic cost of borrowing and the return to lending.

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

Appendix D: Glossary and Data

31 Dec 2005 RDP 2005-11
Andrew Stone, Troy Wheatley and Louise Wilkinson
Foreign variables. gap. US. US real output gap. r. f. Foreign (G3) real interest rate. ... Details of the calculation of this equilibrium real interest rate are provided in Gruen et al (2002).
https://www.rba.gov.au/publications/rdp/2005/2005-11/appendix-d.html

Introduction and Overview

31 Dec 2005 RDP 2005-11
Andrew Stone, Troy Wheatley and Louise Wilkinson
First, it remains non-monetary in nature, for the same reasons as discussed in Beechey et al (2000); as such, a short-term real interest rate continues to be used to ... Moreover, variables such as the real interest rate, previously computed as the
https://www.rba.gov.au/publications/rdp/2005/2005-11/introduction.html

Simulations

31 Dec 2005 RDP 2005-11
Andrew Stone, Troy Wheatley and Louise Wilkinson
Finally, higher domestic real interest rates result in ongoing appreciation of the nominal exchange rate relative to baseline – initially through their direct impact on the real exchange rate, and subsequently reflecting ... A one-off 1 percentage
https://www.rba.gov.au/publications/rdp/2005/2005-11/simulations.html

Remaining Components of the Model

31 Dec 2005 RDP 2005-11
Andrew Stone, Troy Wheatley and Louise Wilkinson
r. f. In steady state the world (G3) real interest rate is assumed to equal its average value (of 1.84 per cent) over the sample 1985:Q1 to 2005:Q1. ... interest differential between Australia and the rest of the world (where real interest rates in both
https://www.rba.gov.au/publications/rdp/2005/2005-11/remaining-components-model.html

References

31 Dec 2005 RDP 2005-11
Andrew Stone, Troy Wheatley and Louise Wilkinson
Gruen D and J Wilkinson (1991), ‘Australia's real exchange rate – Is it explained by the terms of trade or by real interest differentials?’, Reserve Bank of Australia Research Discussion Paper ... 06. Gruen D, T Robinson and A Stone (2005),
https://www.rba.gov.au/publications/rdp/2005/2005-11/references.html