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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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Assessing the Effects of Housing Lending Policy Measures

20 Oct 2018 FSR – October 2018
Notably, although the measures did not directly target the overall amount of household debt or the rate of growth in house prices, they may have had some effect on both. ... The demand-side factors are the cash rate, the rate of growth in real GDP, and
https://www.rba.gov.au/publications/fsr/2018/oct/assessing-effects-housing-lending-policy-measures.html

The Macroeconomic and Financial Environment

10 Sep 2006 FSR – September 2006
The process is most advanced in the United States, with the Federal Reserve having increased official interest rates for a 17th consecutive time in June; the federal funds rate now stands ... These funds have been active in forming bidding groups and
https://www.rba.gov.au/publications/fsr/2006/sep/mac-fin-env.html

The Australian High-Value Payments System

10 Mar 2004 FSR – March 2004
Interbank lending and borrowing are generally settled as cash transfers between banks in this way. ... These operations are designed to ensure that the aggregate supply of Exchange Settlement balances equals banks' aggregate demand at the target cash rate
https://www.rba.gov.au/publications/fsr/2004/mar/aus-high-val-pay-sys.html

The Australian Financial System

10 Mar 2008 FSR – March 2008
rates by an average of 40 basis points more than the increase in the cash rate since July 2007. ... Since late last year, it is estimated that these lenders have increased their advertised interest rates by around 110 basis points more than the
https://www.rba.gov.au/publications/fsr/2008/mar/aus-fin-sys.html

Box B: Business Failure Risk in the COVID-19 Pandemic

9 Oct 2020 FSR – October 2020
support. The model assumes that the relationship between cash flow and failure is not linear in that the failure rate of businesses is assumed to increase a lot more when cash ... The analysis may therefore underestimate the effect of cash flow on total
https://www.rba.gov.au/publications/fsr/2020/oct/box-b-business-failure-risk-in-the-covid-19-pandemic.html

Annex: Selected Policy Responses to the COVID-19 Pandemic

9 Apr 2020 FSR – April 2020
Measure. Timeframe. Target. 3 Mar. RBA. Cash rate: 25bps to 0.50%. From 4 Mar 20. ... Policy coordination. 19 Mar. RBA. Cash rate: 25bps to 0.25%. From 20 Mar 20.
https://www.rba.gov.au/publications/fsr/2020/apr/annex-selected-policy-responses-to-the-covid-19-pandemic.html

Developments in the Financial System Architecture

10 Sep 2013 FSR – September 2013
The size of the CLF for each ADI will be limited to a percentage of their target net cash outflows, as determined by APRA, taking into account the aggregate outflows of ... with industry to develop a code of practice for the clearing and settlement of
https://www.rba.gov.au/publications/fsr/2013/sep/dev-fin-sys-arch.html

Household and Business Balance Sheets

10 Mar 2011 FSR – March 2011
Even so, the overall arrears rates in these regions remain low in absolute terms. ... However, the most recent monthly figures show that the rate of decline has slowed.
https://www.rba.gov.au/publications/fsr/2011/mar/house-bus-bal-sheet.html

Developments in the Financial System Architecture

20 Oct 2016 FSR – October 2016
They have also issued policy statements to support competition in the clearing of cash equities. ... The report found that the administrators of interbank rates, such as the London Interbank Offered Rate, have made progress in using transaction data to
https://www.rba.gov.au/publications/fsr/2016/oct/dev-fin-sys-arch.html

How Do Australian Businesses Raise Debt?

10 Mar 2005 FSR – March 2005
In part, this reflects greater demand for debt from households and a conscious shift by intermediaries to target this sector. ... Anecdotal evidence suggests that while credit rating agencies consider recovery rates when assigning credit ratings, they
https://www.rba.gov.au/publications/fsr/2005/mar/aus-bus-raise.html