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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 A: Literature Review

28 Jan 2020 RDP 2020-01
Benjamin Beckers
Price level: 0.12%, 2 qtrs / –0.8%, 10 qtrs. No price puzzle only when allowing for contemporaneous response of the cash rate to US federal funds rate and to nominal ... shock is always contractionary and temporary, but the cash rate evolves
https://www.rba.gov.au/publications/rdp/2020/2020-01/appendix-a.html

Credit Market Conditions and the Bank's Forecast Errors

28 Jan 2020 RDP 2020-01
Benjamin Beckers
If these conditions ease and credit intermediation and credit supply to the real economy increases, the cash rate increases. ... The results are also robust to including the expected cash rate change as a predictor for inflation forecasts.
https://www.rba.gov.au/publications/rdp/2020/2020-01/credit-market-conditions-and-the-banks-forecast-errors.html

Non-technical summary for ‘Credit Spreads, Monetary Policy and the Price Puzzle’

1 Jan 2020 RDP 2020-01
Benjamin Beckers
Likewise, the Bank also adjusts the cash rate to support a maximum level of employment in the future. ... A lower cash rate increases inflation and output growth, and lowers the unemployment rate.
https://www.rba.gov.au/publications/rdp/2020/2020-01/non-technical-summary.html

Robustness to Model Misspecification and the GFC Episode

28 Jan 2020 RDP 2020-01
Benjamin Beckers
I order both variables after the policy shock so that they may respond instantaneously to a change in the cash rate. ... Figure 10: Monetary Policy Effects – Augmented VAR. Cumulative quarterly responses to 100 basis point cash rate shock,
https://www.rba.gov.au/publications/rdp/2020/2020-01/robustness-to-model-misspecification-and-the-gfc-episode.html

Biased Romer and Romer Estimates – The Role of Credit Spreads

28 Jan 2020 RDP 2020-01
Benjamin Beckers
t. 1. ω. 1. t. 1. The cash rate still affects inflation only through X. ... Another source of bias may be that the cash rate affects inflation through Z.
https://www.rba.gov.au/publications/rdp/2020/2020-01/biased-romer-and-romer-estimates-the-role-of-credit-spreads.html