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.
Search Results
Credit, Money, Interest and Prices
26 Nov 2018
Research Workshop
PDF
1403KB
rates. The average interbank rate is endoge-nous and equal to ı̄ ft. ... When rates onreserves are positive, imt 0, the deposit rate is always positive, regardless Λt.
https://www.rba.gov.au/publications/workshops/research/2018/pdf/rba-workshop-2018-bigio.pdf
The Role of Collateral in Borrowing
14 Jan 2021
RDP
PDF
1784KB
liquid safe assets. This liquid asset demand encourages collateralised lending, contrary to cash. ... Heightened demand for high-quality collateral is. evident from the interest rate differential on collateralised loans across collateral types – rates
https://www.rba.gov.au/publications/rdp/2021/pdf/rdp2021-01.pdf
Three Australian Asset-price Bubbles
27 Nov 2006
Conferences
PDF
264KB
RBA Conference Volume 2003
https://www.rba.gov.au/publications/confs/2003/pdf/simon.pdf
A Factor Model Analysis of the Effects of Inflation Targeting on the Australian Economy
10 Feb 2020
Conferences
PDF
1902KB
RBA Conference Volume 2018
https://www.rba.gov.au/publications/confs/2018/pdf/rba-conference-volume-2018-hartigan-morley.pdf
Mortgage Prepayment and Path-Dependent Effects of Monetary Policy∗ David ...
20 Nov 2018
Research Workshop
PDF
691KB
evolutionof the rate gap distribution is driven by all prepayment including rate, cash-out and purchase prepay-ment. ... This unusual increase in refinancing above and beyond what can be explained by the behaviorof mortgage rates coincides exactly with
https://www.rba.gov.au/publications/workshops/research/2018/pdf/rba-workshop-2018-berger.pdf
Household Leverage and the Recession
19 Dec 2019
Research Workshop
PDF
1138KB
RBA Workshop 2019
https://www.rba.gov.au/publications/workshops/research/2019/pdf/rba-workshop-2019-jones.pdf
The Rise in Household Liquidity
24 Nov 2021
RDP
PDF
1793KB
Midrigan forthcoming). The higher rate of saving has occurred through both amortising mortgage. ... projection methods to demonstrate that lower interest rates are associated with higher household.
https://www.rba.gov.au/publications/rdp/2021/pdf/rdp2021-10.pdf
Macroprudential Limits on Mortgage Products: The Australian Experience
4 Aug 2021
RDP
PDF
2345KB
quarter t , minus the cash rate, in percentage points. It is first differenced in most regressions. ... controls, given that the cash rate is a very strong determinant of mortgage rates.
https://www.rba.gov.au/publications/rdp/2021/pdf/rdp2021-07.pdf
Australian Money Market Divergence: Arbitrage Opportunity or Illusion?
12 Sep 2019
RDP
PDF
1464KB
Note: (a) Discounted variable rates on owner-occupier housing loans; spread to cash rate. ... money markets declined as the spread between money market rates and cash rate expectations.
https://www.rba.gov.au/publications/rdp/2019/pdf/rdp2019-09.pdf
Explaining Global Market Turmoil: A Fresh Perspective on its Origins and Nature
7 Dec 2006
Conferences
PDF
37KB
RBA Conference Volume 1999
https://www.rba.gov.au/publications/confs/1999/pdf/brock.pdf