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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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5 December 2023 | Minutes of the Monetary Policy Meeting of the Board

19 Dec 2023 Minutes
Minutes of the monetary policy meeting of the Reserve Bank Board for 5 December 2023
https://www.rba.gov.au/monetary-policy/rba-board-minutes/2023/2023-12-05.html

The Reserve Bank's Open Market Operations

10 Jun 2003 Bulletin – June 2003
Reflecting this, there is no evidence of a relationship between the level of ES balances and the level of the target cash rate. ... The use of market rates to evaluate bids/offers at different maturities ensures that the Reserve Bank's own views about
https://www.rba.gov.au/publications/bulletin/2003/jun/1.html

Operations in Financial Markets

17 Oct 2019 RBA Annual Report – 2019
The Board adjusted the cash rate target once during 2018/19, from 1.50 per cent to 1.25 per cent in June 2019. ... at an interest rate of 25 basis points above the cash rate target.
https://www.rba.gov.au/publications/annual-reports/rba/2019/operations-in-financial-markets.html

Credit Spreads, Monetary Policy and the Price Puzzle

1 Jan 2020 RDP 2020-01
Benjamin Beckers
in risk premia in large business lending rates is met by an 8 basis point cut to the cash rate. ... If the Board changes the cash rate for reasons other than achieving its inflation target, these changes can be used as instruments for policy shocks with
https://www.rba.gov.au/publications/rdp/2020/2020-01/full.html
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Operations in Financial Markets

24 Oct 2016 RBA Annual Report – 2016
The Board adjusted the cash rate target once during 2015/16, from 2 per cent to 1.75 per cent in May 2016. ... These are remunerated at the cash rate target. In addition to these balances, ESA holders typically hold aggregate surplus balances of
https://www.rba.gov.au/publications/annual-reports/rba/2016/operations-in-financial-markets.html

The Transmission of Monetary Policy through Banks' Balance Sheets | Conference – 2018

12 Apr 2018 Conferences
Anthony Brassil, Jon Cheshire and Joseph Muscatello
This is an important question for the RBA – understanding how cash rate changes are passed through to banks' lending and deposit rates ensures the RBA can set its cash rate target ... The effect of the cash rate on provisioning rates may diminish at
https://www.rba.gov.au/publications/confs/2018/brassil-cheshire-muscatello.html

5 September 2023 | Minutes of the Monetary Policy Meeting of the Board

19 Sep 2023 Minutes
Minutes of the monetary policy meeting of the Reserve Bank Board for 5 September 2023
https://www.rba.gov.au/monetary-policy/rba-board-minutes/2023/2023-09-05.html

The Cash Market

15 Dec 2016 Bulletin – December 2016
Al Hing, Gerard Kelly and David Olivan
The cash market is the market for unsecured, overnight loans between banks. The weighted average of interest rates on these loans is the cash rate, the Reserve Bank's operational target for monetary policy and an important financial benchmark. Over
https://www.rba.gov.au/publications/bulletin/2016/dec/4.html

Twenty-five Years of Inflation Targeting in Australia | Conference – 2018

12 Apr 2018 Conferences
Guy Debelle
But inflation was still at its post-recession lows of 2 per cent when the RBA increased the cash rate by 275 basis points in three moves over the second half ... The fact that inflation was still high as these events unfolded did not constrain the
https://www.rba.gov.au/publications/confs/2018/debelle.html

7 November 2023 | Minutes of the Monetary Policy Meeting of the Board

21 Nov 2023 Minutes
Minutes of the monetary policy meeting of the Reserve Bank Board for 7 November 2023
https://www.rba.gov.au/monetary-policy/rba-board-minutes/2023/2023-11-07.html