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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Financial Conditions
6 Feb 2024
SMP
– February 2024
Financial Conditions | Statement on Monetary Policy – February 2024
https://www.rba.gov.au/publications/smp/2024/feb/financial-conditions.html
Appendix B: Data Definitions
31 Mar 1999
RDP
1999-03
ABS Cat. No. 6202.03, Table 2. From 1990 onwards, the target cash rate. ... Prior to 1990, the unofficial 11am call cash rate. Reserve Bank of Australia Bulletin, Table F.1.
https://www.rba.gov.au/publications/rdp/1999/1999-03/appendix-b.html
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Determination of Cash Rates
1 Dec 1992
RDP
9214
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). ... take action to keep cash rates close to the announced target rate r.
https://www.rba.gov.au/publications/rdp/1992/9214/determination-of-cash-rates.html
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The Consequences of Low Interest Rates for the Australian Banking Sector
21 Dec 2022
RDP
2022-08
Figure 8: Cash Rate Pass-through to Banks' Lending Rates. Source: Brassil, Major and Rickards (2022). ... rate. So cash rate reductions remain an effective policy tool during large downturns and at low interest rates.
https://www.rba.gov.au/publications/rdp/2022/2022-08/full.html
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The Consequences of Low Interest Rates for the Australian Banking Sector
29 Dec 2022
Conferences
PDF
1221KB
RBA Annual Conference 2022
https://www.rba.gov.au/publications/confs/2022/pdf/rba-conference-2022-brassil.pdf
Credit Spreads, Monetary Policy and the Price Puzzle
1 Jan 2020
RDP
2020-01
in risk premia in large business lending rates is met by an 8 basis point cut to the cash rate. ... Table 2: Estimated Policy Rules with Credit Spreads and Expected Cash Rate Changes.
https://www.rba.gov.au/publications/rdp/2020/2020-01/full.html
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An Empirical Model of Australian Interest Rates, Exchange Rates and Monetary Policy
19 Nov 2012
RDP
PDF
729KB
18. Table 1 Variance Decompositions. Percentage of Unofficial Cash Rate Explained by Shock to. ... October 1987 period. However, shocks to cash rates have had. very little discernible effect on the exchange rate.
https://www.rba.gov.au/publications/rdp/1990/pdf/rdp9009.pdf
MARTIN Has Its Place: A Macroeconometric Model of the Australian Economy
20 Aug 2019
RDP
PDF
1571KB
5. Model Dynamics 31. 5.1 An Increase in the Cash Rate 31. ... In MARTIN, the cash rate influences economic activity primarily through the exchange rate, dwelling.
https://www.rba.gov.au/publications/rdp/2019/pdf/rdp2019-07.pdf
Economic Outlook
12 May 2020
SMP
- May 2020
PDF
342KB
https://www.rba.gov.au/publications/smp/2020/may/pdf/06-economic-outlook.pdf
The Transmission of Monetary Policy through Banks' Balance Sheets | Conference – 2018
12 Apr 2018
Conferences
as the reference rates are market determined and assumed to fully incorporate current and expected cash rate changes). ... The effect of the cash rate on provisioning rates may diminish at low interest rates.
https://www.rba.gov.au/publications/confs/2018/brassil-cheshire-muscatello.html