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 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
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
Statement on Monetary Policy - August 2015
7 Aug 2015
SMP
- August 2015
PDF
1966KB
https://www.rba.gov.au/publications/smp/2015/aug/pdf/0815.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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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
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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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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Economic Outlook
10 Feb 2020
SMP
- November 2018
PDF
1604KB
https://www.rba.gov.au/publications/smp/2018/nov/pdf/05-economic-outlook.pdf
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