Search: Cash Rate

Sort by: Relevance Date
1–6 of 6 collapsed search results for 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.

Search Results

Scenario Analysis

31 Dec 2014 RDP 2014-11
Josef Manalo, Dilhan Perera and Daniel Rees
Figure 6 shows the counterfactual paths of the real exchange rate, inflation, the cash rate and GDP growth in this scenario. ... However, at 5–6 per cent, the cash rate would have been at around its average level in the inflation-targeting era.
https://www.rba.gov.au/publications/rdp/2014/2014-11/sce-analysis.html

Appendix A: Data

31 Dec 2014 RDP 2014-11
Josef Manalo, Dilhan Perera and Daniel Rees
RDP 2014-11: Exchange Rate Movements and the Australian Economy Appendix A: Data. ... Overnight cash rate: Overnight cash rate, averaged over the quarter. Nominal official cash rate until June 1998, and then the interbank overnight rate (RBA statistical
https://www.rba.gov.au/publications/rdp/2014/2014-11/appendix-a.html

Results

31 Dec 2014 RDP 2014-11
Josef Manalo, Dilhan Perera and Daniel Rees
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

Model and Data

31 Dec 2014 RDP 2014-11
Josef Manalo, Dilhan Perera and Daniel Rees
The Australian variables are real GDP, a measure of sectoral production (for example, manufacturing gross value added), trimmed mean inflation, the cash rate and the real TWI. ... Inflation enters the model in quarterly percentage changes, the cash rate
https://www.rba.gov.au/publications/rdp/2014/2014-11/mod-data.html

Introduction

31 Dec 2014 RDP 2014-11
Josef Manalo, Dilhan Perera and Daniel Rees
We identify exchange rate shocks as any movement in the exchange rate not explained by other economic factors, such as interest rates or the terms of trade. ... However, this real exchange rate appreciation would have been accompanied by a large increase
https://www.rba.gov.au/publications/rdp/2014/2014-11/introduction.html

Robustness Checks

31 Dec 2014 RDP 2014-11
Josef Manalo, Dilhan Perera and Daniel Rees
The exchange rate is ordered before the cash rate in the identification scheme. ... The fact that including long-term bond yields does not affect the results suggests that our identification strategy is not misinterpreting exchange rate movements caused
https://www.rba.gov.au/publications/rdp/2014/2014-11/rob-checks.html