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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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Credibility, Flexibility and Renewal: The Evolution of Inflation Targeting in Canada | Conference – 2018

12 Apr 2018 Conferences
Thomas J Carter, Rhys Mendes and Lawrence L Schembri
This departure left the BoC in need of a target that could replace the exchange rate as a nominal anchor for monetary policy. ... Among its themes were two factors that potentially favoured a target higher than 2 per cent, namely downward nominal wage
https://www.rba.gov.au/publications/confs/2018/carter-mendes-schembri.html

The Australian Economic 'Miracle': A View from the North

24 Nov 2006 Conferences PDF 124KB
RBA Conference Volume 2000
https://www.rba.gov.au/publications/confs/2000/pdf/bean.pdf

Strategies for Controlling Inflation | Conference – 1997

21 Jul 1997 Conferences
Frederic S. Mishkin
Like monetary-aggregate and exchange-rate targets, it is readily understood by the public, but, even more directly than the others, it makes clear the commitment to price stability. ... In contrast to the exchange-rate target, but like the
https://www.rba.gov.au/publications/confs/1997/mishkin.html

The Objectives for, and Conduct of, Monetary Policy in the 1990s | Conference – 1992

21 Jun 1990 Conferences
Charles Goodhart
Moreover, an exchange rate target is more tangible and understandable than a number (how obtained) for some (how and why chosen) abstract ‘M’. ... Depending, therefore, in part on the degree of multilateralism involved, an exchange rate target can
https://www.rba.gov.au/publications/confs/1992/goodhart.html

Inflation Targeting in New Zealand: An Experience in Evolution | Conference – 2018

12 Apr 2018 Conferences
John McDermott and Rebecca Williams
The RBNZ recognised this, and we replaced the MCI with the Official Cash Rate (OCR) as the instrument of monetary policy in March 1999. ... Hunt C (2004), ‘Interpreting Clause 4(b) of the Policy Targets Agreement: Avoiding Unnecessary Instability in
https://www.rba.gov.au/publications/confs/2018/mcdermott-williams.html

The Evolution of Financial Deregulation | Conference – 1991

21 Jun 1991 Conferences
Stephen Grenville
meant that even with the interest differential between market rates and the SRD rate rising, the implicit tax of SRD holdings did not increase);. ... The proximate operating objective became the cash rate, and the link between this and commercial rates
https://www.rba.gov.au/publications/confs/1991/grenville.html

Is Monetary Policy Less Effective When Interest Rates Are Persistently Low? | Conference – 2017

16 Mar 2017 Conferences
Claudio Borio and Boris Hofmann
This is because banks are reluctant to reduce deposit rates below zero, even when the policy rate crosses that barrier. ... In more general settings, interest rates may also affect consumption by influencing income or cash flows and through wealth effects
https://www.rba.gov.au/publications/confs/2017/borio-hofmann.html

Discussion | Conference – 2018

12 Apr 2018 Conferences
Let's not spend any time on money targets or exchange rate targets. ... Trying to get more impact out of interest rate movements suggests two policy possibilities: raising the inflation target or breaking through the ELB.
https://www.rba.gov.au/publications/confs/2018/mckibbin-panton-disc.html

Discussion | Conference – 2018

12 Apr 2018 Conferences
where. is the legislated target rate. ... the overnight cash rate – affects inflation.
https://www.rba.gov.au/publications/confs/2018/archer-levin-disc.html

Small Business Conditions and Finance

23 Sep 2015 Conferences PDF 4551KB
RBA Conference Volume 2015
https://www.rba.gov.au/publications/confs/2015/pdf/conf-vol-2015.pdf