A method of encoding a time-domain audio signal is presented. A device transforms the time-domain signal into a frequency-domain signal including a sequence of sample blocks, wherein each block includes a coefficient for each of multiple frequencies. The coefficients of each block are grouped into frequency bands. For each frequency band of each block, a scale factor is estimated for the band, and the energy of the band for the block is compared with the energy of the band of an adjacent sample block, wherein the blocks may be adjacent to each other in either or both of an interchannel and a temporal sense. If the ratio of the band energy for the first block to the band energy for the adjacent block is less than some value, the scale factor of the band for the first block is increased. The coefficients of the band for each block are quantized based on the resulting scale factor. The encoded audio signal is generated based on the quantized coefficients and the scale factors.