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RBA Glossary definition for cash rate target

cash rate target – As in most developed countries, the stance of monetary policy in Australia is expressed in terms of a target for an overnight interest rate. The rate used by the Reserve Bank of Australia is the cash rate (also known as the interbank overnight rate). When the Reserve Bank Board decides that a change in monetary policy should occur, it specifies a new target for the cash rate. A decision to ease policy is reflected in a new lower target for the cash rate, while a decision to tighten policy is reflected in a higher target.

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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Executive Summary | Submission to the Financial System Inquiry – March 2014 | Financial Sector | Submissions

1 Mar 2014 Submissions
And the entry of foreign banks in the online deposit market saw deposit rates increase relative to the cash rate. ... These developments increased banks' funding costs and lending rates relative to the cash rate.
https://www.rba.gov.au/publications/submissions/financial-sector/financial-system-inquiry-2014-03/executive-summary.html

Feasibility of Further Expansion | Report to the Inquiry into Competition in the Banking and Non-Banking Sectors – May 2009 | Financial…

7 May 2009 Submissions
ultimately compromise the Bank's ability to manage liquidity in the overnight cash market and thereby compromise the stability of the cash rate. ... With funds maturing less often, fewer funds are available for the primary purpose of short-term liquidity
https://www.rba.gov.au/publications/submissions/financial-sector/inquiry-report-2009-05/feasibility-of-further-expansion.html

The Regulatory Response to the Global Financial Crisis | Submission to the Financial System Inquiry – March 2014 | Financial Sector |…

1 Mar 2014 Submissions
standards, regulation of securities financing including minimum standards on cash collateral reinvestment, and improvements to market structure such as central clearing. ... Emerging market economies have a history of using macroprudential tools, often
https://www.rba.gov.au/publications/submissions/financial-sector/financial-system-inquiry-2014-03/regulatory-response-to-the-global-financial-crisis.html

Handout and Supplementary Information Prepared for Standing Committee on Economics – September 2016 | Bank Fees and Margins | Submissions

22 Sep 2016 Submissions
Handout and Supplementary Information Prepared for Standing Committee on Economics – September 2016
https://www.rba.gov.au/publications/submissions/financial-sector/handout-standing-committee-on-economics-2016-09-22/

Submissions

8 May 2024 Submissions
Index of Documents commissioned by or prepared for Parliament, its committees, and other public inquiries
https://www.rba.gov.au/publications/submissions/

Proposed merger between Armaguard and Prosegur – October 2022 | Responses and Options Paper

8 May 2024 Submissions
The current low level of interest rates also makes holding cash relatively more attractive, due to the lower opportunity cost of holding physical cash (which earns no interest). ... Unpublished surveys commissioned by [text redacted] the Reserve Bank
https://www.rba.gov.au/publications/submissions/payments-system/proposed-merger-armaguard-and-prosegur-submission-october-2022/index.html

Inquiry into Future Directions for the Consumer Data Right – April 2020 | Payments System | Submissions

8 May 2024 Submissions
lower interest rate or better features in general. ... vulnerable clients providing log-in details to payday lenders, only to have the payday lender use the log-in details later to identify when a consumer is getting low on cash
https://www.rba.gov.au/publications/submissions/payments-system/future-directions-for-the-consumer-data-right/index.html

Applications for Authorisation in Relation to PIN@POS – July 2016 | Payments System | Submissions

8 May 2024 Submissions
In 2012, Australian cardholders made around 4.8 billion card payments (more than half of non-cash payments), with a total value of more than $400 billion. ... In the five years to 2012, the value of credit card and debit card payments increased by an
https://www.rba.gov.au/publications/submissions/payments-system/applications-for-authorisation-re-pin@pos-2013-07/index.html

Submission to the Senate Inquiry into Matters Relating to Credit Card Interest Rates-Introduction

8 May 2024 Submissions
very high, lower-rate cards are widely available, as are balance-transfer arrangements where issuers offer zero or low interest rates for a defined period of time. ... Advertised rates on standard and lower-rate cards have been quite sticky in recent
https://www.rba.gov.au/publications/submissions/financial-sector/inquiry-matters-relating-to-credit-card-interest-rates-2015-08/introduction.html

Submission to the Senate Inquiry into Matters Relating to Credit Card Interest Rates-Credit Cards as Payment Instruments

8 May 2024 Submissions
Typically, the relatively low ‘strategic’ interchange rates for large merchants have precedence over the interchange category for the type of card, so that the same relatively low rate for strategic merchants ... those not benefiting from strategic
https://www.rba.gov.au/publications/submissions/financial-sector/inquiry-matters-relating-to-credit-card-interest-rates-2015-08/credit-cards-as-payment-instruments.html