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.
Search Results
Where’s the Money‽ An Investigation into the Whereabouts and Uses of Australian Banknotes
11 Dec 2018
RDP
PDF
1641KB
the rate at which banknotes pass through depots is an indication of transactional cash use. ... interest rates. Unlike card payments, however, the value of cash payments is not observed directly.
https://www.rba.gov.au/publications/rdp/2018/pdf/rdp2018-12.pdf
Measuring Economic Uncertainty and Its Effects
22 Feb 2016
RDP
PDF
1096KB
available monthly: retail sales growth; the cash rate; and ANZ-Roy Morgan consumer confidence.20. ... variables. Such a response of the cash rate might help mitigate the effects of uncertainty on.
https://www.rba.gov.au/publications/rdp/2016/pdf/rdp2016-01.pdf
A Sectoral Model of the Australian Economy
13 May 2008
RDP
PDF
220KB
The inclusion of the overnight cash rate (cash) and a measure of the real exchange rate (rtwi) is standard (Brischetto and Voss 1999; Dungey and Pagan 2000; Berkelmans 2005). ... Figure 2: Responses to a 25 Basis Point Increase in the Cash Rate.
https://www.rba.gov.au/publications/rdp/2008/pdf/rdp2008-01.pdf
Consumption and Permanent Income: The Australian Case
19 Nov 2012
RDP
PDF
865KB
subject to A t1. : (1rt)(At yt - Ct). where & : rate of time preference. ... return on financial assets) and r (the real rate used to discount future.
https://www.rba.gov.au/publications/rdp/1988/pdf/rdp8808.pdf
Identifying Interbank Loans from Payments Data
6 Dec 2016
RDP
PDF
3267KB
Figure 2: Implied Interest Rates of Algorithm Matches. Implied rate of simple interest, deviation from target cash rate, 2015. ... cash rate), so there should be very few false positives (some studies exhibit high rates of false.
https://www.rba.gov.au/publications/rdp/2016/pdf/rdp2016-11.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
Disagreement about Inflation Expectations
12 May 2016
RDP
PDF
1105KB
expectations includes extreme values that cannot be explained by informed processing of available. ... First, the extent to which it can be explained by macroeconomic news surprises.
https://www.rba.gov.au/publications/rdp/2016/pdf/rdp2016-02.pdf
How Risky is Australian Household Debt?
19 Aug 2020
RDP
PDF
1880KB
vulnerabilities. For example, rising incomes or structurally lower nominal interest rates both allow. ... Global interest rates will be an. appropriate instrument for each country’s rate to the extent that country’s economy does not drive global
https://www.rba.gov.au/publications/rdp/2020/pdf/rdp2020-05.pdf
A Multi-sector Model of the Australian Economy
14 May 2015
RDP
PDF
1314KB
Together, thesethree parameters imply that the model’s steady-state cash rate is equal to 6 per cent. ... We scale the shock sothat the median cash rate response is 100 basis points on impact.10.
https://www.rba.gov.au/publications/rdp/2015/pdf/rdp2015-07.pdf
The Demand for Money in Australia: New Tests on an Old Topic
30 Nov 2009
RDP
PDF
135KB
In the presentation of theresults, the inflation rate is not included since we found that it did not containexplanatory power in addition to nominal interest rates.1. ... short-term rate changes were expected to endure, such that theyaffected rates
https://www.rba.gov.au/publications/rdp/1993/pdf/rdp9314.pdf