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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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China's Evolving Monetary Policy Framework in International Context

1 Dec 2019 RDP 2019-11
Bradley Jones and Joel Bowman
Exchange rate. Inflation. Operational target(s). Monetary base. 7-day interbank repo rate. ... Overnight cash rate target. Reserves/asset purchases. Primary instrument(s). PBC repo rate in corridor system.
https://www.rba.gov.au/publications/rdp/2019/2019-11/full.html
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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

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

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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2.1 Annual Performance Statement for 2022/23

19 Oct 2023 RBA Annual Report – October 2023
Annual Performance Statement for 2022/23 | Reserve Bank of Australia Annual Report – October 2023
https://www.rba.gov.au/publications/annual-reports/rba/2023/annual-performance-statement.html

Reserve Bank of Australia Annual Report 2023

1 May 2024 RBA Annual Report - 2023 PDF 9575KB
https://www.rba.gov.au/publications/annual-reports/rba/2023/pdf/rba-annual-report-2023.pdf

The Distributional Effects of Monetary Policy: Evidence from Local Housing Markets

1 Feb 2020 RDP 2020-02
Calvin He and Gianni La Cava
In the baseline models, the stance of monetary policy is measured by the cash rate target, as published in RBA statistical table F1 (Interest Rates and Yields – Money Market). ... Δ. c. r. t. represents the quarterly percentage point change in the
https://www.rba.gov.au/publications/rdp/2020/2020-02/full.html
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The Consequences of Low Interest Rates for the Australian Banking Sector

19 Dec 2022 RDP PDF 1588KB
3.1.2.1 Unconventional policies typically used at low interest rates. While the cash rate target has remained above zero in Australia, the RBA implemented several. ... Central bank deposits in Australia are remunerated at a rate that moves with the cash
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-08.pdf

The Yield and Market Function Effects of the Reserve Bank of Australia’s Bond Purchases

19 May 2022 RDP PDF 1938KB
AGS yields to term-matched overnight indexed swap (OIS) rates.10 The cash rate target was reduced. ... observed effect is confounded with the reduction in the cash rate target, announced at the same.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-02.pdf

Monetary Policy, Equity Markets and the Information Effect

24 Oct 2021 RDP PDF 1573KB
prescription. For example, if the conventional effects of cash rate changes (e.g. ... approximation of the 3 to 5-year growth rate. Cash rate change Monetary policy surprise-4.
https://www.rba.gov.au/publications/rdp/2021/pdf/rdp2021-04.pdf