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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Doing Less, with Less: Capital Misallocation, Investment and the Productivity Slowdown in Australia
16 Mar 2023
RDP
PDF
1288KB
uncertainty; pessimism about future outcomes (‘animal spirits’); sticky hurdle rates; less demand for. ... rates (Gutiérrez and Philippon 2019); and a slowdown in the efficiency of resource reallocation.
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-03.pdf
Trends in the Funding and Lending Behaviour of Australian Banks
2 Feb 2015
RDP
PDF
1090KB
24. Figure 9: Funding Costs and Variable Lending Rates Spread to cash rate. ... Despite this, indicator lending rates remain strongly anchored to changes in the cash rate (Figure 10).
https://www.rba.gov.au/publications/rdp/2013/pdf/rdp2013-15.pdf
Australian Money Market Divergence: Arbitrage Opportunity or Illusion?
12 Sep 2019
RDP
PDF
1464KB
Note: (a) Discounted variable rates on owner-occupier housing loans; spread to cash rate. ... money markets declined as the spread between money market rates and cash rate expectations.
https://www.rba.gov.au/publications/rdp/2019/pdf/rdp2019-09.pdf
Consumption Behavior across the Distribution of Liquid Assets
19 Dec 2023
Research Workshop
PDF
2239KB
RBA Workshop 2023
https://www.rba.gov.au/publications/workshops/research/2023/pdf/rba-workshop-2023-graham-mcdowall.pdf
The Rise in Household Liquidity
24 Nov 2021
RDP
PDF
1793KB
Midrigan forthcoming). The higher rate of saving has occurred through both amortising mortgage. ... projection methods to demonstrate that lower interest rates are associated with higher household.
https://www.rba.gov.au/publications/rdp/2021/pdf/rdp2021-10.pdf
The Term Funding Facility: Has It Encouraged Business Lending?
8 Dec 2022
RDP
PDF
2133KB
the provision of credit, thereby supporting economic activity: a reduction in the cash rate to 25 basis. ... with reductions in the cash rate target and 3-year government bond yield target.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-07.pdf
The Real Effects of Debt Covenants: Evidence from Australia
24 Oct 2022
RDP
PDF
1647KB
This is because. changes in the cash rate are not exogenous, but instead reflect systematic responses to economic. ... They are. then purged of financial market expectations for the cash rate to ensure that changes in monetary.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-05.pdf
The Role of Collateral in Borrowing
14 Jan 2021
RDP
PDF
1784KB
liquid safe assets. This liquid asset demand encourages collateralised lending, contrary to cash. ... Heightened demand for high-quality collateral is. evident from the interest rate differential on collateralised loans across collateral types – rates
https://www.rba.gov.au/publications/rdp/2021/pdf/rdp2021-01.pdf
Macroprudential Limits on Mortgage Products: The Australian Experience
4 Aug 2021
RDP
PDF
2345KB
quarter t , minus the cash rate, in percentage points. It is first differenced in most regressions. ... controls, given that the cash rate is a very strong determinant of mortgage rates.
https://www.rba.gov.au/publications/rdp/2021/pdf/rdp2021-07.pdf
How Australians Pay: Evidence from the 2016 Consumer Payments Survey
24 Jul 2017
RDP
PDF
1438KB
5. Cash 16. 5.1 Cash Payments 16. 5.2 Cash Holdings 22. ... survey. Overall, including all payments, transfers, cash top-ups and automatic payments, around.
https://www.rba.gov.au/publications/rdp/2017/pdf/rdp2017-04.pdf