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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The Effect of Credit Constraints on Housing Prices: (Further) Evidence from a Survey Experiment
31 Jan 2023
RDP
2023-01
Figure 3: Effect of Lower Rates on Housing Demand. Mortgage rate lowered from 6.5 per cent to 4.5 per cent. ... The response of WTP to a change in interest rate is little changed across the spectrum of subjective discount rates.
https://www.rba.gov.au/publications/rdp/2023/2023-01/full.html
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The Effect of Credit Constraints on Housing Prices: (Further) Evidence from a Survey Experiment
25 Jan 2023
RDP
PDF
1588KB
For the mortgage rate cut experiment, analysing the demand curves does not show systematicdifferences between the average effect of interest rates and the effect on the marginal buyer. ... Figure 3: Effect of Lower Rates on Housing DemandMortgage rate
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-01.pdf
Estimating the Effects of Monetary Policy in Australia Using Sign-restricted Structural Vector Autoregressions
3 Jan 2023
RDP
2022-09
cash rate, exchange rate, inflation, modelling, monetary policy. Existing estimates of the macroeconomic effects of Australian monetary policy tend to be based on strong, potentially contentious, assumptions. ... There is robust evidence that an increase
https://www.rba.gov.au/publications/rdp/2022/2022-09.html
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Read me file for Estimating the Effects of Monetary Policy in Australia Using Sign-restricted Structural Vector Autoregressions
2 Jan 2023
RDP
PDF
417KB
RDP 2022-09 supplementary information
https://www.rba.gov.au/publications/rdp/2022/2022-09/rdp-2022-09-read-me.pdf
Non-technical summary for 'Estimating the Effects of Monetary Policy in Australia Using Sign-restricted Structural Vector Autoregressions'
30 Dec 2022
RDP
PDF
535KB
RDP 2022-09 non-technical summary
https://www.rba.gov.au/publications/rdp/2022/2022-09/rdp-2022-09-non-technical-summary.pdf
Estimating the Effects of Monetary Policy in Australia Using Sign-restricted Structural Vector Autoregressions
29 Dec 2022
RDP
PDF
1886KB
draw some useful inferences about the effects of changes in the cash rate. ... zero-coupon forward rates) to further purge the cash rate of variation that is anticipated by financial.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-09.pdf
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
19 Dec 2022
RDP
PDF
1588KB
others typically pay some spread above the cash rate (or expected future cash rates). ... deposit rates lowers the net income from holding central bank deposits as the cash rate falls.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-08.pdf
Non-technical summary for 'The Consequences of Low Interest Rates for the Australian Banking Sector'
16 Dec 2022
RDP
PDF
434KB
RDP 2022-08 non-technical summary
https://www.rba.gov.au/publications/rdp/2022/2022-08/rdp-2022-08-non-technical-summary.pdf
The Term Funding Facility: Has It Encouraged Business Lending?
13 Dec 2022
RDP
2022-07
On 19 March 2020, the RBA introduced a range of measures to lower funding costs and encourage the provision of credit, thereby supporting economic activity: a reduction in the cash rate ... In November 2020, the cost of new funding under the TFF was
https://www.rba.gov.au/publications/rdp/2022/2022-07/full.html
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