Search: cash rate target

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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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2017

6 Oct 2022 Bulletin
Insights into the economy and financial system from teams throughout the Reserve Bank of Australia
https://www.rba.gov.au/publications/bulletin/2017/

Statement on Monetary Policy

10 Feb 2002 Bulletin – February 2002
This easing continued in December, when the cash rate was reduced to its lowest level in almost 30 years, bringing the cumulative reduction in the cash rate to 200 basis points. ... The RBNZ reduced the official cash rate by a further 50 basis points in
https://www.rba.gov.au/publications/bulletin/2002/feb/1.html

Semi-Annual Statement on Monetary Policy

10 Nov 1999 Bulletin – November 1999
Nevertheless, activity there remains vulnerable to recent increases in interest rates needed to maintain the exchange rate peg to the US dollar. ... Graph 5. Japan remains an exception to this, with markets expecting that the Bank of Japan will maintain
https://www.rba.gov.au/publications/bulletin/1999/nov/1.html

Fixed-rate Housing Loans: Monetary Policy Transmission and Financial Stability Risks

16 Mar 2023 Bulletin – March 2023
Gian-Piero Lovicu, Jin Lim, Anthea Faferko, Amelia Gao, Anirudh Suthakar and Declan Twohig
Fixed-rate borrowing increased significantly during the COVID-19 pandemic, which has delayed the effect of the higher cash rate on borrowers’ cash flows.
https://www.rba.gov.au/publications/bulletin/2023/mar/fixed-rate-housing-loans-monetary-policy-transmission-and-financial-stability-risks.html

Topic: Finance

12 Mar 2019 Bulletin
Insights into the economy and financial system from teams throughout the Reserve Bank of Australia
https://www.rba.gov.au/publications/bulletin/finance/

Interest Rate Benchmarks for the Australian Dollar

20 Sep 2018 Bulletin – September 2018
Serena Alim and Ellis Connolly
Interest rate benchmarks are widely relied upon in global financial markets. They are referenced in contracts for derivatives, loans and securities.
https://www.rba.gov.au/publications/bulletin/2018/sep/interest-rate-benchmarks-for-the-australian-dollar.html

Statement on Monetary Policy

10 May 2002 Bulletin – May 2002
Maintaining the cash rate at such a low level risked amplifying inflationary risks and fuelling other imbalances that could jeopardise a continuation of the current economic expansion. ... With inflation now towards the top end of the Reserve Bank of New
https://www.rba.gov.au/publications/bulletin/2002/may/1.html

Statement on Monetary Policy

10 Nov 2002 Bulletin – November 2002
But looking further ahead, the prospect is that CPI inflation will converge towards the underlying rate and hence will be within the target range. ... Graph 6. In the US, the Federal Open Market Committee (FOMC) kept the policy rate unchanged at 1.75 per
https://www.rba.gov.au/publications/bulletin/2002/nov/1.html

Overnight Indexed Swap Rates

19 Jun 2002 Bulletin PDF 62KB
Further, by comparing the fixed rates forswaps of different maturities, it is possible toassess not only the magnitude of the expectedchange in the cash rate but also the timing ofthese changes. ... Table 2: Comparisons of Actual and Expected Cash Rate.
https://www.rba.gov.au/publications/bulletin/2002/jun/pdf/bu-0602-3.pdf

Semi-Annual Statement on Monetary Policy

10 May 1998 Bulletin – May 1998
At 5.6 per cent, the yield on 10-year US bonds is barely above the US cash rate – i.e. ... This is because arbitrage by market participants works to ensure that three-month interest rates reflect the expected average cash rate over that period.
https://www.rba.gov.au/publications/bulletin/1998/may/2.html