Search: cash rate explained
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 Lags of Monetary Policy
1 Dec 2009
RDP
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246KB
To begin at the beginning, however, the first source of monetary policy lags is thedelay in pass-through of changes in the overnight cash rate to other interest rates.While the ... The headline measure is more widelyreported but is directly affected by
https://www.rba.gov.au/publications/rdp/1997/pdf/rdp9702.pdf
Exchange Rate Movements and the Australian Economy
4 Feb 2015
RDP
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1416KB
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. ... This is consistent with the observation that movements in nominal exchange rates (which
https://www.rba.gov.au/publications/rdp/2014/pdf/rdp2014-11.pdf
The Relationship between Actual Investment and Survey-based Expectations
19 Nov 2012
RDP
PDF
548KB
10-year Treasury Bonds) interest rates. The expected interest rate can be. ... 9. by comparing, in the case of short-term rates, the difference between the rate.
https://www.rba.gov.au/publications/rdp/1988/pdf/rdp8810.pdf
The Cost of Equity Capital in Australia: What Can We Learn from International Equity Returns?
18 Apr 2007
RDP
PDF
445KB
In the corporate finance literature, these last two adjustments would typically be made at the cash flow level, before applying the cost of funds as the discount rate. ... The population adjustments are approximate, and use the average population rate
https://www.rba.gov.au/publications/rdp/1991/pdf/rdp9107.pdf
On Some Recent Developments in Monetary Economics
19 Nov 2012
RDP
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829KB
the financial system will lead to changes in cash rates aud exchange rates,. ... overall level of interest rates. Indeed, with innovations such as. floating-rate loans diffused widely, this sensitivity may have lessened.
https://www.rba.gov.au/publications/rdp/1986/pdf/rdp8605.pdf
How Many Jobs Did JobKeeper Keep?
2 Dec 2020
RDP
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1843KB
adjustments to payment rates (‘JobKeeper 2.0’). There were some further modifications announced. ... RBA 2020).4. Second, the $1,500 payment rate also acted as a wage floor.
https://www.rba.gov.au/publications/rdp/2020/pdf/rdp2020-07.pdf
Why Do Companies Hold Cash?
12 May 2016
RDP
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1105KB
interest rates and corporate cash to future research. To preview our main results, we find that:. ... costs play some role in determining cash holdings. 2. The trend increase in the cash holdings of publicly listed companies can be largely explained by.
https://www.rba.gov.au/publications/rdp/2016/pdf/rdp2016-03.pdf
The Evolution of Payment Costs in Australia
11 Apr 2019
RDP
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1298KB
One implication of that analysis is that while cash is reasonably cheap for. ... Part of the decline in the per account costs can be explained by economies of scale.
https://www.rba.gov.au/publications/rdp/2014/pdf/rdp2014-14.pdf
A Tale of Two Surveys: Household Debt and Financial Constraints in Australia
2 Dec 2009
RDP
PDF
168KB
Most of the other cash flow problems can be explained by households being unable to pay registration or insurance on time (29 per cent) or because they had to ask family ... The fall in interest income can be explained by lower retail deposit and
https://www.rba.gov.au/publications/rdp/2003/pdf/rdp2003-08.pdf
Household Economic Inequality in Australia
25 Oct 2017
RDP
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4842KB
11. (which has tended to reduce inequality), which is consistent with the substantialtrend decline in the unemployment rate since the early 1990s. ... Furthermore,the average rate of home ownership is higher amongst low-income householdsthan amongst
https://www.rba.gov.au/publications/rdp/2015/pdf/rdp2015-15.pdf