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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Appendix D: Glossary and Data
31 Dec 2005
RDP
2005-11
s. De-trended real share accumulation index. i. Nominal cash rate. Neutral real cash rate. ... y. Real non-farm output. r. Real cash rate. p. m,trf. Tariff-adjusted import prices, measured in Australian dollars.
https://www.rba.gov.au/publications/rdp/2005/2005-11/appendix-d.html
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Domestic Financial Conditions
5 Aug 2022
SMP
– August 2022
Some lenders have also announced the full pass-through of the August increase in the cash rate to housing reference rates. ... These tend to be priced with reference to BBSW rates, which moved higher earlier in anticipation of increases in the cash rate.
https://www.rba.gov.au/publications/smp/2022/aug/domestic-financial-conditions.html
Monetary Policy, Equity Markets and the Information Effect
23 Mar 2021
RDP
2021-04
Consistent with standard models, unexpected increases in the cash rate cause equity prices to fall (Figure 3). ... The absolute value of the effect is much smaller when using the cash rate as the independent variable.
https://www.rba.gov.au/publications/rdp/2021/2021-04/full.html
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Domestic Financial Conditions
5 Nov 2020
SMP
– November 2020
Following the reduction in the cash rate target and the remuneration on ES balances in November, repo rates at the Bank's daily market operations declined to 10 basis points. ... Graph 4.19. The cash rate reductions and other policy measures announced
https://www.rba.gov.au/publications/smp/2020/nov/domestic-financial-conditions.html
Domestic Financial Conditions
4 Feb 2021
SMP
– February 2021
Graph 3.12. Short-term money market rates are at historically low levels owing to the low level of the cash rate and the large amount of liquidity in the banking ... Following the reduction in the cash rate target and the remuneration on ES balances in
https://www.rba.gov.au/publications/smp/2021/feb/domestic-financial-conditions.html
Fixed-rate Housing Loans: Monetary Policy Transmission and Financial Stability Risks
16 Mar 2023
Bulletin
– March 2023
Fixed-rate borrowing increased significantly during the COVID-19 pandemic, which has delayed the effect of the higher cash rate on borrowers’ cash flows.
https://www.rba.gov.au/publications/bulletin/2023/mar/fixed-rate-housing-loans-monetary-policy-transmission-and-financial-stability-risks.html
Operations in Financial Markets
17 Oct 2019
RBA Annual Report
– 2019
at an interest rate of 25 basis points above the cash rate target. ... The Reserve Bank is the administrator of the cash rate, which is the operational target for monetary policy.
https://www.rba.gov.au/publications/annual-reports/rba/2019/operations-in-financial-markets.html
Domestic Financial Conditions
5 Nov 2021
SMP
– November 2021
the yield target in assisting to hold down the general structure of interest rates in Australia as expectations of the future cash rate path shifted. ... Graph 3.10. Short-term money market rates remain near historical lows given the low level of the
https://www.rba.gov.au/publications/smp/2021/nov/domestic-financial-conditions.html
The Transmission of Monetary Policy: How Does It Work?
15 Sep 2017
Bulletin
– September 2017
The transmission of monetary policy refers to how changes to the cash rate affect economic activity and inflation. This article outlines the stages of transmission and the channels through which it occurs. The effects of monetary policy are hard to
https://www.rba.gov.au/publications/bulletin/2017/sep/1.html
Domestic Financial Conditions
6 May 2021
SMP
– May 2021
year tenor reflects the different expectations for the cash rate as implied by overnight indexed swap (OIS) rates and the Bank's guidance for the cash rate target at this horizon ... Graph 3.15. Short-term money market rates remain near historical lows,
https://www.rba.gov.au/publications/smp/2021/may/domestic-financial-conditions.html