Processing an audio signal represented by the Modified Discrete Cosine Transform (MDCT) of a time-sampled real signal is disclosed in which the loudness of the transformed audio signal is measured, and at least in part in response to the measuring, the loudness of the transformed audio signal is modified. When gain modifying more than one frequency band, the variation or variations in gain from frequency band to frequency band, is smooth. The loudness measurement employs a smoothing time constant commensurate with the integration time of human loudness perception or slower.