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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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Why Do Companies Hold Cash?

1 May 2016 RDP 2016-03
Gianni La Cava and Callan Windsor
This is our main focus; we leave a more detailed exploration of the links between monetary policy, interest rates and corporate cash to future research. ... If companies respond to positive cash flow shocks by raising the rate at which they save cash out
https://www.rba.gov.au/publications/rdp/2016/2016-03/full.html

Appendix A: Tax Minimisation and Cash Management Behaviour of Multinational Companies

18 May 2016 RDP 2016-03
Gianni La Cava and Callan Windsor
These funds will tend to be held in cash in times of limited foreign investment opportunities. ... To examine this, we compared the conditional cash ratios of companies identified as having the lowest average annual effective tax rates (low tax companies)
https://www.rba.gov.au/publications/rdp/2016/2016-03/appendix-a.html

Introduction

18 May 2016 RDP 2016-03
Gianni La Cava and Callan Windsor
This is our main focus; we leave a more detailed exploration of the links between monetary policy, interest rates and corporate cash to future research. ... Adão and Silva (2015) suggest that high levels of cash might make the economy more sensitive to
https://www.rba.gov.au/publications/rdp/2016/2016-03/introduction.html

References

18 May 2016 RDP 2016-03
Gianni La Cava and Callan Windsor
Almeida H, M Campello and MS Weisbach (2004), ‘The Cash Flow Sensitivity of Cash’,. ... Firms Hold So Much More Cash than They Used To?’,. The Journal of Finance. ,
https://www.rba.gov.au/publications/rdp/2016/2016-03/references.html

Extensions and Robustness Tests

18 May 2016 RDP 2016-03
Gianni La Cava and Callan Windsor
RDP 2016-03: Why Do Companies Hold Cash? 7. Extensions and Robustness Tests. ... If companies respond to positive cash flow shocks by raising the rate at which they save cash out of cash flows then we would expect the coefficient estimate to be positive (
https://www.rba.gov.au/publications/rdp/2016/2016-03/extensions-and-robustness-tests.html