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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 Lags of Monetary Policy

1 Dec 2009 RDP PDF 246KB
To begin at the beginning, however, the first source of monetary policy lags is thedelay in pass-through of changes in the overnight cash rate to other interest rates.While the ... The headline measure is more widelyreported but is directly affected by
https://www.rba.gov.au/publications/rdp/1997/pdf/rdp9702.pdf

What Do Financial Market Data Tell Us About Monetary Policy Transparency?

2 Dec 2009 RDP PDF 516KB
The first period is from 1986 to 1989, which corresponds to the time before a cash rate target was announced. ... b) During this period where there was no official target cash rate, policy changes were identified based.
https://www.rba.gov.au/publications/rdp/2003/pdf/rdp2003-05.pdf

Exchange Rate Movements and the Australian Economy

4 Feb 2015 RDP PDF 1416KB
returning to trend in subsequent quarters.10 The cash rate responds little to the shock in the first few quarters. ... v) The exchange rate is ordered before the cash rate in the identification scheme.
https://www.rba.gov.au/publications/rdp/2014/pdf/rdp2014-11.pdf

Consumer Credit Card Choice: Costs, Benefits and Behavioural Biases

2 Oct 2018 RDP PDF 1746KB
cash; in most other respects, credit cards provide very similar functionality to debit cards. ... few months than to offers of a slightly higher introductory rate that lasted longer.
https://www.rba.gov.au/publications/rdp/2018/pdf/rdp2018-11.pdf

A Sectoral Model of the Australian Economy

13 May 2008 RDP PDF 220KB
The inclusion of the overnight cash rate (cash) and a measure of the real exchange rate (rtwi) is standard (Brischetto and Voss 1999; Dungey and Pagan 2000; Berkelmans 2005). ... Figure 2: Responses to a 25 Basis Point Increase in the Cash Rate.
https://www.rba.gov.au/publications/rdp/2008/pdf/rdp2008-01.pdf

The Changing Way We Pay: Trends in Consumer Payments

4 Feb 2015 RDP PDF 1225KB
Further, data on cash withdrawals suggest that the share of payments made by cash has declined; growth in the value of cash withdrawals has been consistently below the growth rate of ... 10. 11. 4. Cash. Cash remained the most frequently used instrument
https://www.rba.gov.au/publications/rdp/2014/pdf/rdp2014-05.pdf

Read me file for Credit Spreads, Monetary Policy and the Price Puzzle

24 Jan 2020 RDP PDF 500KB
RDP 2020-01 supplementary information
https://www.rba.gov.au/publications/rdp/2020/2020-01/rdp-2020-01-read-me.pdf

MONEY DEM.RD, OWN INTEREST RATES MW DEREGULATION Adrian Blundell_Wignall* ...

17 Oct 2014 RDP PDF 1096KB
rates may also be important, the rate of return available on a broader. ... rates rise, tending to reduce money demand, the own rate also rises offsetting.
https://www.rba.gov.au/publications/rdp/1987/pdf/rdp8703.pdf

Affine Endeavour: Estimating a Joint Model of the Nominal and Real Term Structures of Interest Rates in Australia

22 Feb 2018 RDP PDF 1672KB
 Surveys on cash rate expectations obtained from the RBA survey of market economists and. ... extended to include cash rate forecasts. 21 Measures of unions’ long-term inflation expectations did increase sharply around this time, so it is
https://www.rba.gov.au/publications/rdp/2018/pdf/rdp2018-02.pdf

The Demand for Money in Australia: New Tests on an Old Topic

30 Nov 2009 RDP PDF 135KB
In the presentation of theresults, the inflation rate is not included since we found that it did not containexplanatory power in addition to nominal interest rates.1. ... short-term rate changes were expected to endure, such that theyaffected rates
https://www.rba.gov.au/publications/rdp/1993/pdf/rdp9314.pdf