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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The Global Financial Environment
9 Oct 2020
FSR
– October 2020
increased demand for cash and caused market dysfunction, leading to a tightening in global financial conditions. ... Delays in the transition away from London Inter-Bank Offered Rates (LIBOR) also create risks.
https://www.rba.gov.au/publications/fsr/2020/oct/global-financial-environment.html
The Rise in Household Liquidity
24 Nov 2021
RDP
PDF
1793KB
Midrigan forthcoming). The higher rate of saving has occurred through both amortising mortgage. ... projection methods to demonstrate that lower interest rates are associated with higher household.
https://www.rba.gov.au/publications/rdp/2021/pdf/rdp2021-10.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
Financial Stability Review - September 2005
26 Sep 2005
FSR
- September 2005
PDF
494KB
https://www.rba.gov.au/publications/fsr/2005/sep/pdf/0905.pdf
A Model of the Australian Housing Market
1 Mar 2019
RDP
2019-01
The model suggests that much of the strength in housing prices and construction over the past few years can be explained by the fall in interest rates – some of this fall ... So long-term interest rates enter the user cost. However, housing prices seem
https://www.rba.gov.au/publications/rdp/2019/2019-01/full.html
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Appendix E: Extra VAR Results
14 Mar 2016
RDP
2016-01
cash rate, except the ‘cash rate in differences’ series, which shows the change in the cash rate. ... However, with the possible exception of the cash rate, the differences are neither large nor economically interesting.
https://www.rba.gov.au/publications/rdp/2016/2016-01/appendix-e.html
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Australian Money Market Divergence: Arbitrage Opportunity or Illusion?
1 Sep 2019
RDP
2019-09
Note: (a) Discounted variable rates on owner-occupier housing loans; spread to cash rate. ... Subsequently in 2019, net returns in all these money markets declined as the spread between money market rates and cash rate expectations narrowed.
https://www.rba.gov.au/publications/rdp/2019/2019-09/full.html
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How Australians Pay: Evidence from the 2016 Consumer Payments Survey
1 Jul 2017
RDP
2017-04
amount, source) and the amount of cash they held after the top-up. ... Similarly, higher-income consumers have switched away from cash towards cards at a faster rate than respondents with lower incomes in recent years.
https://www.rba.gov.au/publications/rdp/2017/2017-04/full.html
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The Australian Financial System
10 Feb 2020
FSR
- April 2017
PDF
1611KB
https://www.rba.gov.au/publications/fsr/2017/apr/pdf/aus-fin-sys.pdf
Macroprudential Limits on Mortgage Products: The Australian Experience
4 Aug 2021
RDP
PDF
2345KB
quarter t , minus the cash rate, in percentage points. It is first differenced in most regressions. ... controls, given that the cash rate is a very strong determinant of mortgage rates.
https://www.rba.gov.au/publications/rdp/2021/pdf/rdp2021-07.pdf