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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 2015 FSR – October 2015
Interest rates on existing variable-rate investor housing loans have been lifted by between 20 and 50 basis points (although one major bank instead increased pricing for interest-only loans). ... Since the start of this year, the major banks' average
https://www.rba.gov.au/publications/fsr/2015/oct/aus-fin-sys.html

Developments in the Financial System Architecture

10 Mar 2015 FSR – March 2015
in Australian dollar-, US dollar-, euro-, British pound- and Japanese yen-denominated interest rate derivatives. ... According to the Report, the costs of higher capital on lending rates and GDP growth would be small.
https://www.rba.gov.au/publications/fsr/2015/mar/dev-fin-sys-arch.html

The Australian Financial System

10 Sep 2014 FSR – September 2014
In addition, some banks recently raised their commission rates paid to mortgage brokers. ... Some life insurers have responded by increasing premium rates recently on group policies.
https://www.rba.gov.au/publications/fsr/2014/sep/aus-fin-sys.html

Developments in the Financial System Infrastructure

10 Mar 2008 FSR – March 2008
In addition, there is a safety valve through which institutions experiencing temporary technical settlement problems can obtain overnight funding at 25 basis points above the cash rate target. ... At the end of the month, the recipient of the funds may
https://www.rba.gov.au/publications/fsr/2008/mar/dev-sys-infra.html

FSR Developments in the Financial System

10 Sep 2008 FSR – September 2008
The Bank's initial response, in August 2007, was to significantly boost the pool of exchange settlement funds that commercial banks hold at the RBA, in order to maintain the cash ... rate at the target set by the Reserve Bank Board.
https://www.rba.gov.au/publications/fsr/2008/sep/dev-sys-infra.html

The Global Financial Environment

20 Oct 2015 FSR – October 2015
to narrow if the liberalisation of interest rates increases price competition for funding. ... While housing price inflation slowed significantly following the implementation of restrictions on high loan-to-value ratio (LVR) lending in late 2013 and
https://www.rba.gov.au/publications/fsr/2015/oct/global-fin-env.html

The Australian Financial System

10 Apr 2018 FSR – April 2018
The exposure of banks and other financial institutions to higher interest rates is discussed in ‘Box C: Interest Rate Risk in the Australian Financial System’.). ... Both RITS and ASX set annual minimum availability targets; the target for RITS is
https://www.rba.gov.au/publications/fsr/2018/apr/australian-financial-system.html

The Global Financial Environment

20 Apr 2016 FSR – April 2016
In part this reflects financial deepening in these economies and a response to lower global long-term interest rates. ... Housing prices in Hong Kong rose especially quickly until late 2015, partly as a result of low interest rates associated with its
https://www.rba.gov.au/publications/fsr/2016/apr/global-fin-env.html

The Australian Financial System

10 Sep 2007 FSR – September 2007
These operations have meant that the cash rate has remained very close to its target of 6.50 per cent through this period. ... As noted above, while these operations have kept the cash rate – which is the rate for overnight unsecured borrowing –
https://www.rba.gov.au/publications/fsr/2007/sep/aus-fin-sys.html

The Australian Financial System

21 Apr 2017 FSR – April 2017
Review. , and is now above the rate for owner-occupier housing credit in six-month-ended annualised terms. ... the levels prevailing pre-crisis, despite a large decline in risk-free rates.
https://www.rba.gov.au/publications/fsr/2017/apr/aus-fin-sys.html