Search: interbank overnight rate
RBA Glossary definition for interbank overnight rate
interbank overnight rate – The interbank overnight rate (also known as the cash rate) is the interest rate which banks pay or charge to borrow funds from or lend funds to other banks on an overnight unsecured basis. The Reserve Bank of Australia uses this rate as an operational target for the implementation of monetary policy. The Reserve Bank of Australia calculates and publishes this rate each day on the basis of data collected directly from banks. The interbank overnight rate has been published by the Reserve Bank of Australia since June 1998.
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The Impact of Unconventional Monetary Policy on the Overnight Interbank Market | Conference – 2013
19 Aug 2013
Conferences
That is, the substantial increase in excess reserves drove overnight interbank rates towards the rate at which the central bank remunerates reserves, namely the floor of the corridor. ... Therefore, the equilibrium overnight rate satisfies:. That is,. is
https://www.rba.gov.au/publications/confs/2013/bech-monnet.html
Discussion on The Impact of Unconventional Monetary Policy on the Overnight Interbank Market | Conference – 2013
19 Aug 2013
Conferences
However, the competitive market clearing condition yields a single overnight rate, which implies that the model is silent about the volatility of overnight rates. ... The model considers how unconventional monetary policy affects interbank interest rates,
https://www.rba.gov.au/publications/confs/2013/bech-monnet-disc.html
Recent Developments in Federal Reserve System Liquidity and Reserve Operations | Conference – 2008
14 Jul 2008
Conferences
Dislocations in these bank term funding markets spilled over into the overnight interbank funding market as well. ... Nonetheless, despite the elevated levels of intraday and interday rate volatility, the overnight rate – when averaged over longer
https://www.rba.gov.au/publications/confs/2008/hilton.html
Liquidity, Financial Crises and the Lender of Last Resort – How Much of a Departure is the Sub-prime Crisis? | Conference – 2008
14 Jul 2008
Conferences
These combined features led to the emergence of historically large interest rate premia – and quantity-rationing of funds – in the domestic interbank markets in the United States, the United Kingdom and ... Extreme tightness of the interbank market
https://www.rba.gov.au/publications/confs/2008/davis.html
The Economics of Shadow Banking | Conference – 2013
19 Aug 2013
Conferences
This has resulted in market segmentation and creates a wedge in money market rates because overnight rates for depository institutions cannot trade below the floor of the corridor, while the rates ... Thus the effective federal funds rate, which is
https://www.rba.gov.au/publications/confs/2013/singh.html
Introduction | Conference – 2013
19 Aug 2013
Conferences
In particular, they note four facts: higher excess reserves drive overnight interbank rates towards the bottom of the interest rate corridor, reduce volatility and reduce market volume. ... Also, higher credit risk for an institution raises the overnight
https://www.rba.gov.au/publications/confs/2013/intro-2013.html
Financial System Liquidity, Asset Prices and Monetary Policy | Conference – 2005
11 Jul 2005
Conferences
Although a central bank generally directly controls only the overnight interest rate, its communication policy serves to guide the market's expectations into doing its bidding. ... The orthodox view of monetary policy is that, although the central bank
https://www.rba.gov.au/publications/confs/2005/shin.html
Financial Markets, Institutions and Liquidity | Conference – 2013
19 Aug 2013
Conferences
institutions with higher profitability, higher capital ratios, and fewer problem loans pay lower rates. ... Furthermore, the size and relative importance of the trading institution has a negative impact on the interest rate charged for overnight borrowing
https://www.rba.gov.au/publications/confs/2013/allen-carletti.html
On the Economics of Committed Liquidity Facilities | Conference – 2013
19 Aug 2013
Conferences
In both facilities, the up-front fee is lower than the spread between the rate for the central bank's standing lending facility and the target for the overnight rate. ... Moreover, both facilities charge banks the overnight lending facility rate for
https://www.rba.gov.au/publications/confs/2013/bech-keister.html
The Unfolding Turmoil of 2007–2008: Lessons and Responses | Conference – 2008
20 Aug 2007
Conferences
Two types of interest rate spreads are especially helpful in tracking events as they have unfolded: the spreads of 3-month London Interbank Offered Rate (LIBOR) over the overnight index swap ... The former is a good indicator of liquidity in interbank
https://www.rba.gov.au/publications/confs/2008/cohen-remolona.html