Search: Cash Rate
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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MARTIN Gets a Bank Account: Adding a Banking Sector to the RBA's Macroeconometric Model
18 Jan 2022
RDP
2022-01
In the RBA's macroeconometric model, known as MARTIN (Ballantyne et al 2019), the difference between banks' mortgage rates and the RBA's cash rate is treated as exogenous (i.e. ... With deposit rates unable to move below zero, cash rate reductions cause
https://www.rba.gov.au/publications/rdp/2022/2022-01/full.html
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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
Results
27 Feb 2018
RDP
2018-02
na. na. σ. cash rate. 0.0037. (0.0001). na. na. na. na. ... Specifically, we estimated a model of nominal rates using the methodology outlined in Adrian et al (2013), but extended to include cash rate forecasts.
https://www.rba.gov.au/publications/rdp/2018/2018-02/results.html
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The Distributional Effects of Monetary Policy: Evidence from Local Housing Markets
1 Feb 2020
RDP
2020-02
In the baseline models, the stance of monetary policy is measured by the cash rate target, as published in RBA statistical table F1 (Interest Rates and Yields – Money Market). ... Carroll et al 2017). Therefore, their discount rates may be relatively
https://www.rba.gov.au/publications/rdp/2020/2020-02/full.html
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Do Monetary Policy and Economic Conditions Impact Innovation? Evidence from Australian Administrative Data
13 Feb 2024
RDP
PDF
1260KB
cash rate will be endogenous. That is, innovation activity and monetary policy are co-determined by. ... shock measures. We consider four measures:. • The change in the policy rate (cash rate) itself. •
https://www.rba.gov.au/publications/rdp/2024/pdf/rdp2024-01.pdf
The Rise in Household Liquidity
10 Nov 2021
RDP
2021-10
The relevant interest rate is derived from RBA statistical table ‘F5 Indicator Lending Rates’. ... Households may respond to this increased risk by increasing their rate of precautionary saving.
https://www.rba.gov.au/publications/rdp/2021/2021-10/full.html
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The Impact of Interest Rates on Bank Profitability: A Retrospective Assessment Using New Cross-country Bank-level Data
21 Jun 2023
RDP
2023-05
Starting with the impact on banks' interest margins, several studies identify a nonlinear relationship between interest rates and NIMs, with the marginal impact of a cut to the cash rate larger ... In fact, for France, Norway and Poland a further
https://www.rba.gov.au/publications/rdp/2023/2023-05/full.html
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Does Monetary Policy Affect Non-mining Business Investment in Australia? Evidence from BLADE
22 Dec 2023
RDP
2023-09
nmbi: non-mining business investment – ABS national accounts. btcs: Beckers (2020) shock measure, not accounting for cash rate expectations. ... cr: cash rate changes – RBA statistical table F1.1 Interest Rates and Yields – Money Market – Monthly.
https://www.rba.gov.au/publications/rdp/2023/2023-09/read-me.html
Macrofinancial Stress Testing on Australian Banks
13 Sep 2023
RDP
PDF
1940KB
to be invariant to fiscal policy, the level of the cash rate and exchange rates, which are therefore. ... experience of the spread between the three-month bank bill swap rate and the cash rate during.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-03.pdf
An Empirical Model of Australian Interest Rates, Exchange Rates and Monetary Policy
19 Nov 2012
RDP
PDF
729KB
ABSTRACT. In this paper we use daily data to examine the relationships behveen the unoffidal cash rate, the $A/$US exchange rate and other interest rates. ... October 1987 period. However, shocks to cash rates have had. very little discernible effect on
https://www.rba.gov.au/publications/rdp/1990/pdf/rdp9009.pdf