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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The Yield Curve and Real Activity
1 May 1992
RDP
9204
RDP 9204: The Term Structure of Interest Rates, Real Activity and Inflation 3. ... Relatively low interest rates in turn induce consumers to substitute consumption and investment across time periods.
https://www.rba.gov.au/publications/rdp/1992/9204/yield-curve-and-real-activity.html