Search: 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.
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Appendix D: Glossary and Data
31 Dec 2005
RDP
2005-11
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
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
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
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
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