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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Strategies for Controlling Inflation | Conference – 1997
21 Jul 1997
Conferences
Given conventional estimates of the interest elasticity of money and the real interest rate when inflation is zero, this cost is quite low for inflation rates less than 10 per cent, ... In contrast, the typical fixed or pegged exchange-rate regime does
https://www.rba.gov.au/publications/confs/1997/mishkin.html
Policy Panel | Conference – 2013
19 Aug 2013
Conferences
This is because the current situation is characterised by very low interest rates and an overabundance of liquidity in the system. ... This in turn may lead to different interest rate curves, depending on the various asset classes and reflecting the
https://www.rba.gov.au/publications/confs/2013/policy-panel-2013.html
Securitisation and the Commercial Property Cycle | Conference – 2012
20 Aug 2012
Conferences
The 1990 start date occurs after the bust in commercial property prices, when the high rates of completion were due to construction lags. ... Doing so imposes a discipline on management, in the sense that there is relatively little free cash flow
https://www.rba.gov.au/publications/confs/2012/packer-riddiough.html
Academic Views of Capital Flows: An Expanding Universe | Conference – 1999
9 Aug 1999
Conferences
Because the exchange rate regime ends when reserves go to zero, subsequent deficits are financed by money creation. ... Finally, there is an exogenous riskless rate of return that the net return on land must equal.
https://www.rba.gov.au/publications/confs/1999/dooley-walsh.html
The Australian Economic ‘Miracle’: A View from the North | Conference – 2000
24 Jul 2000
Conferences
The cut in the cash rate of a percentage point at the end of July 1997 soon after the Asian Crisis broke and the RBA's acceptance of the subsequent depreciation ... interest rate; and the term structure of nominal interest rates (R.
https://www.rba.gov.au/publications/confs/2000/bean.html
Determinants of Agricultural and Mineral Commodity Prices | Conference – 2009
17 Aug 2009
Conferences
The expected rate of return to these two alternatives must be the same:. ... Volatility. Spot-futures spread. Inventories. Real interest rate. Risk. Hypothesised sign on coefficient. /.
https://www.rba.gov.au/publications/confs/2009/frankel-rose.html
Discussion on The Evolution of Monetary Policy: From Money Targets to Inflation Targets | Conference – 1997
21 Jul 1997
Conferences
This is one of the reasons why the Bank made such heavy weather of admitting its cash-rate decisions in the later 1980s. ... changes in interest rates explained in terms of creating an environment in which the economy can grow as quickly as is possible
https://www.rba.gov.au/publications/confs/1997/hughes-disc.html
Discussion | Conference – 2018
12 Apr 2018
Conferences
My guess is that it's quite hard to get far below zero nominal rates: even if you got rid of cash, the financial markets would develop alternative deposits which would ... The tentative experience so far suggests that negative interest rates mainly work
https://www.rba.gov.au/publications/confs/2018/mckibbin-panton-disc.html
OTC Derivatives Reform: Netting and Networks | Conference – 2013
19 Aug 2013
Conferences
In contrast, once variation margin is paid, typically in cash, the receiver is free to reuse the funds. ... rates. The margin rate, m, is set to achieve a minimum level of coverage of price movements.
https://www.rba.gov.au/publications/confs/2013/heath-kelly-manning.html
Restructuring and Reform: China 2016 | Conference – 2016
18 Mar 2016
Conferences
Certainly we would expect the growth rate of investment to drop dramatically and the composition of investment to change. ... than the 9.5 per cent growth rate of all service sector firms’ (trans by author).
https://www.rba.gov.au/publications/confs/2016/naughton.html