The much lower nominal
interest rate structure prevailing in Australia in the 1990s reflects, in part, the large decline in inflation since the late 1980s.
Changes in monetary policy mean a change in the operating target for the cash rate, and hence a shift in
the interest rate structure prevailing in the financial system.
Not exact matches
Also a benefit to the senior loan
structures is that loans are floating -
rate instruments, which have coupon resets periodically with the
prevailing benchmark for the
interest rate (i.e., LIBOR).