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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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The Australian Financial System

20 Oct 2018 FSR – October 2018
Interest rates in short-term wholesale funding markets have risen notably this year, despite the official cash rate remaining stable. ... debt. Non-ADI lenders' funding costs are also more affected by the recent increase in BBSW rates, since all of their
https://www.rba.gov.au/publications/fsr/2018/oct/aus-fin-sys.html

Mortgage Macroprudential Policies

8 Oct 2021 FSR – October 2021
For affected new borrowers, this would cap their debt-servicing costs for a given interest rate and ensure they have larger cash buffers when they take out their loan. ... This serviceability assessment rate accounts for potential increases in interest
https://www.rba.gov.au/publications/fsr/2021/oct/mortgage-macroprudential-policies.html

What Works Among Active Labour Market Policies: Evidence from OECD Countries' Experiences | Conference – 1998

9 Jun 1998 Conferences
John P. Martin
The replacement rates are for the first month of unemployment, after waiting periods have been satisfied. ... The most direct step to curb the unemployment trap is to cut replacement rates.
https://www.rba.gov.au/publications/confs/1998/martin.html

The Australian Financial System

10 Mar 2014 FSR – March 2014
available to participants via repurchase agreements (repos) with an open-ended repurchase date that is contracted at the cash rate target. ... Any surplus ESA funds earn a rate 25 basis points below the cash rate target, while any shortfall incurs a 25
https://www.rba.gov.au/publications/fsr/2014/mar/aus-fin-sys.html

Capital Flows, Hedge Funds and Market Failure: A Hong Kong Perspective | Conference – 1999

9 Aug 1999 Conferences
Joseph CK Yam
Some critics have cited the choice of exchange rate regime as a source of the problem. ... Second, the hedge funds built up short positions in the cash and futures equity markets.
https://www.rba.gov.au/publications/confs/1999/yam.html

Discussion on Setting Monetary Policy in East Asia: Goals, Developments and Institutions | Conference – 2001

24 Jul 2001 Conferences
Thus, the interest-rate volatility measure might be more illuminating if it made use of a long interest rate rather than a cash rate. ... On exchange-rate regimes, it was argued that the forces that pushed countries towards floating exchange rates –
https://www.rba.gov.au/publications/confs/2001/mccauley-disc.html

Discussion | Conference – 2017

16 Mar 2017 Conferences
The second relationship is between the credit-to-GDP ratio and the lending rate on the debt outstanding, and captures the effect of cash flow constraints that households face due to ... where i. L,t. is the nominal average lending rate on the stock of
https://www.rba.gov.au/publications/confs/2017/cagliarini-price-disc.html

The Australian Government's Current Approach to Monetary Policy: An Evaluation | Conference – 1997

21 Jul 1997 Conferences
Peter J. Stemp
procedures that focused on the cash rate as the primary operating instrument of monetary policy and the adoption of the so-called ‘check-list’ or ‘indicators’ approach. ... In a world of flexible exchange rates and limited impediments to
https://www.rba.gov.au/publications/confs/1997/stemp.html

Australia's Prosperous 2000s: Housing and the Mining Boom | Conference – 2011

24 Jul 2000 Conferences
Jonathan Kearns and Philip Lowe
The cash rate reached 7.25 per cent in early 2008, its highest level in over a decade. ... Throughout the 2000s, there was broad community and political support for the key elements of the framework which include: (i) a medium-term inflation target; (ii)
https://www.rba.gov.au/publications/confs/2011/kearns-lowe.html

The Australian Financial System

20 Apr 2016 FSR – April 2016
The major banks' average outstanding deposit rate has fallen by almost 60 basis points since the start of last year, compared with a 50 basis point decline in the cash rate ... To date it appears that most funds have responded to lower returns by
https://www.rba.gov.au/publications/fsr/2016/apr/aus-fin-sys.html