Search: Cash Rate
RBA Glossary definition for Cash Rate
Cash Rate – The interest rate which banks pay to borrow funds from other banks in the money market on an overnight basis. The cash rate is the Reserve Bank of Australia's operational target for the implementation of monetary policy. It is also an important financial benchmark in the Australian financial markets. It is used as the reference rate for Australian dollar Overnight Indexed Swaps (OIS) and the ASX 30 Day Interbank Cash Rate Futures. The Reserve Bank of Australia is the administrator of the cash rate. The cash rate is calculated as the weighted average interest rate on overnight unsecured loans between banks settled in the Reserve Bank Information and Transfer System (RITS). The Cash Rate is also known by the acronym AONIA in financial markets.
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The Main Questions
1 Dec 1988
RDP
8812
0.41. 0.89. 0.46. 90-day bill rates. 2.21. 2.06. 1.04. Official cash rate. ... At the other extreme, if there is zero capital mobility, foreign interest rates have no impact on the domestic rate.
https://www.rba.gov.au/publications/rdp/1988/8812/main-questions.html
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Identifying Repo Market Microstructure from Securities Transactions Data
16 Aug 2018
RDP
2018-09
False detection and false omission rates are estimated to be 3 per cent or less. ... From 2006 to 2015, the distribution of repo-rate spreads (to the cash rate) drifted up and tightened, and the market shifted towards overnight maturities.
https://www.rba.gov.au/publications/rdp/2018/2018-09.html
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Does Monetary Policy Affect Non-mining Business Investment in Australia? Evidence from BLADE
11 Dec 2023
RDP
2023-09
This suggests that evidence that some, particularly large, firms have sticky hurdle rates does not mean that they do not respond to monetary policy. ... We find evidence that financially constrained firms, and sectors that are more dependent on external
https://www.rba.gov.au/publications/rdp/2023/2023-09.html
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Anticipatory Monetary Policy and the ‘Price Puzzle’
22 May 2017
RDP
2017-02
This ‘price puzzle’ is commonly thought to reflect interest rates being tightened in anticipation of future inflation, reflecting information possessed by policymakers beyond that contained in the model. ... Romer and Romer (2004) and Cloyne and
https://www.rba.gov.au/publications/rdp/2017/2017-02.html
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Results
31 Dec 2014
RDP
2014-11
The cash rate responds little to the shock in the first few quarters. ... 1.5. Inflation. 1.0. 3.6. 3.9. 3.3. Cash rate. 0.1. 1.9. 3.8.
https://www.rba.gov.au/publications/rdp/2014/2014-11/results.html
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Methodology
19 Dec 2023
RDP
2023-09
We allow the shock to enter the model directly, similar to Durante et al (2022), rather than using it as an instrument for changes in the cash rate. ... That said, the results are reasonably robust to using the shock as an instrument for cash rate changes
https://www.rba.gov.au/publications/rdp/2023/2023-09/methodology.html
Appendix A: A Small Macroeconomic Model of Australia
31 Dec 2002
RDP
2002-01
f. is the foreign output gap, measured as deviations of US GDP from a linear trend; r is the real cash rate (the instrument of monetary policy less aggregate inflation); and ... where e is the nominal exchange rate and wp represents world export prices.
https://www.rba.gov.au/publications/rdp/2002/2002-01/appendix-a.html
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Financial-asset Prices and Monetary Policy: Theory and Evidence | Conference – 1997
21 Jul 1997
Conferences
appreciation by raising interest rates as the exchange rate signals a rise in the demand for home goods which may lead to inflationary pressures. ... The estimate of the parameter γ implies that the Australian cash rate is raised by around 25 basis
https://www.rba.gov.au/publications/confs/1997/smets.html
The Cost of Inflation in Australia | Conference – 1992
10 Jul 1992
Conferences
In addition, because housing loan interest costs are not deductible, and because nominal housing loan rates might rise in excess of the rate inflation due to the tax-adjusted Fisher effect ... Suppose borrowers and lenders face different marginal tax
https://www.rba.gov.au/publications/confs/1992/mctaggart.html
Appendix B: A Framework for Analysis
1 Feb 1998
RDP
9803
where y is non-farm output, y. is OECD output, tot is the terms of trade, rtwi is the real TWI, r is the real cash rate and fy is farm ... where the superscript eqm indicates an equilibrium value. The real exchange rate is:.
https://www.rba.gov.au/publications/rdp/1998/1998-03/appendix-b.html
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