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.
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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
MARTIN Has Its Place: A Macroeconometric Model of the Australian Economy
1 Aug 2019
RDP
2019-07
Business lending rate. Per cent. Nominal. RBA. NBRSP. Business spread to cash rate. ... RBA. NMR. Mortgage rate. Per cent. Nominal. RBA. NMRSP. Mortgage rate spread to cash rate.
https://www.rba.gov.au/publications/rdp/2019/2019-07/full.html
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The Rise in Household Liquidity
10 Nov 2021
RDP
2021-10
The relevant interest rate is derived from RBA statistical table ‘F5 Indicator Lending Rates’. ... Households may respond to this increased risk by increasing their rate of precautionary saving.
https://www.rba.gov.au/publications/rdp/2021/2021-10/full.html
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The Cash Market in Australia
31 Jan 2006
RDP
PDF
245KB
The weighted average of these two rates is called the official cash rate. ... In practice, it is the unofficial cash rate which is targeted by the Bank (though, as explained later, the unofficial and official cash rates are about equal).
https://www.rba.gov.au/publications/rdp/1992/pdf/rdp9214.pdf
BA-MARTIN in Detail
18 Jan 2022
RDP
2022-01
cash rate and banks' cost of funding increases as the cash rate falls. ... By cash rate level. The lending spreads banks charge above their costs of debt funding have historically been unrelated to the level of interest rates (see Graph 13 in Garner and
https://www.rba.gov.au/publications/rdp/2022/2022-01/ba-martin-in-detail.html
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The Implementation of Monetary Policy in Australia
1 Jul 1997
RDP
9703
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/1997/9703.html
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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. ... the expected average overnight cash rate over the term of the OIS contract.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-02.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
The Neutral Interest Rate
10 Feb 2020
Bulletin
September Quarter 2017
PDF
1033KB
https://www.rba.gov.au/publications/bulletin/2017/sep/pdf/bu-0917-2-the-neutral-interest-rate.pdf
Bulletin September Quarter 2020
9 Jun 2021
Bulletin
- September 2020
PDF
5941KB
https://www.rba.gov.au/publications/bulletin/2020/sep/pdf/bulletin-2020-09.pdf