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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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Operations in Financial Markets

27 Oct 2022 RBA Annual Report – October 2022
Because the Reserve Bank no longer sets the supply of ES balances to keep the cash rate close to the target, OMO no longer targets a fixed quantity to deal. ... In that case, other short-term money market rates would be above the cash rate target.
https://www.rba.gov.au/publications/annual-reports/rba/2022/operations-in-financial-markets.html

Operations in Financial Markets

21 Oct 2021 RBA Annual Report – 2021
However, the cash rate target remains a key element of the monetary policy framework. ... at an interest rate of 25 basis points above the cash rate target.
https://www.rba.gov.au/publications/annual-reports/rba/2021/operations-in-financial-markets.html

2.2 Operations in Financial Markets

19 Oct 2023 RBA Annual Report – October 2023
Operations in Financial Markets | Reserve Bank of Australia Annual Report – October 2023
https://www.rba.gov.au/publications/annual-reports/rba/2023/operations-in-financial-markets.html

5-6 February 2024 | Minutes of the Monetary Policy Meeting of the Board

20 Feb 2024 Minutes
Minutes of the monetary policy meeting of the Reserve Bank Board for 5-6 February 2024
https://www.rba.gov.au/monetary-policy/rba-board-minutes/2024/2024-02-06.html

Operations in Financial Markets

12 Apr 2020 RBA Annual Report – 2020
at an interest rate of 25 basis points above the cash rate target. ... below the cash rate target of 25 basis points when lending cash overnight.
https://www.rba.gov.au/publications/annual-reports/rba/2020/operations-in-financial-markets.html

Reserve Bank of Australia Annual Report – 2023

19 Oct 2023 Annual Report
Our yearly report on the operations of the Reserve Bank of Australia.
https://www.rba.gov.au/publications/annual-reports/rba/2023/

The Transmission of Monetary Policy through Banks' Balance Sheets | Conference – 2018

12 Apr 2018 Conferences
Anthony Brassil, Jon Cheshire and Joseph Muscatello
This is an important question for the RBA – understanding how cash rate changes are passed through to banks' lending and deposit rates ensures the RBA can set its cash rate target ... The effect of the cash rate on provisioning rates may diminish at
https://www.rba.gov.au/publications/confs/2018/brassil-cheshire-muscatello.html

Operations in Financial Markets

17 Oct 2019 RBA Annual Report – 2019
The Board adjusted the cash rate target once during 2018/19, from 1.50 per cent to 1.25 per cent in June 2019. ... at an interest rate of 25 basis points above the cash rate target.
https://www.rba.gov.au/publications/annual-reports/rba/2019/operations-in-financial-markets.html

Operations in Financial Markets

24 Oct 2016 RBA Annual Report – 2016
The Board adjusted the cash rate target once during 2015/16, from 2 per cent to 1.75 per cent in May 2016. ... These are remunerated at the cash rate target. In addition to these balances, ESA holders typically hold aggregate surplus balances of
https://www.rba.gov.au/publications/annual-reports/rba/2016/operations-in-financial-markets.html

Twenty-five Years of Inflation Targeting in Australia | Conference – 2018

12 Apr 2018 Conferences
Guy Debelle
But inflation was still at its post-recession lows of 2 per cent when the RBA increased the cash rate by 275 basis points in three moves over the second half ... The fact that inflation was still high as these events unfolded did not constrain the
https://www.rba.gov.au/publications/confs/2018/debelle.html