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 B: Data
31 Dec 2001
RDP
2001-05
To calculate real interest rates, we use quarterly nominal interest rates and quarterly consumer price indices. ... The bilateral series used in estimation, for both short and long rates, is the natural logarithm of the standard deviation of the real
https://www.rba.gov.au/publications/rdp/2001/2001-05/appendix-b.html
Conclusions
31 Dec 2001
RDP
2001-05
The volatility of bilateral exchange rates is also found to be significant with lower bilateral exchange rate volatility associated with higher correlations. ... These include: the similarity of monetary policy in the two countries (as measured by the
https://www.rba.gov.au/publications/rdp/2001/2001-05/conclusions.html
Empirical Results
31 Dec 2001
RDP
2001-05
Under a flexible bilateral exchange rate regime, common monetary policies (for example, highly correlated short-term interest rates) can arise from common underlying shocks. ... Greater volatility of either the short-term interest rate differentials or
https://www.rba.gov.au/publications/rdp/2001/2001-05/empirical-results.html
Introduction
31 Dec 2001
RDP
2001-05
Table 1: GDP Growth Rate Correlations. Four-quarter-ended growth rates. 1960:Q1–1979:Q4. 1980:Q1–2000:Q4. ... 0.03. 0.22. 0.18. Maximum. 0.70. 0.85. 0.75. Notes: Statistics are calculated over the correlations of real GDP growth rates from the
https://www.rba.gov.au/publications/rdp/2001/2001-05/introduction.html