Search: cash rate explained
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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An Empirical Model of Australian Interest Rates, Exchange Rates and Monetary Policy
19 Nov 2012
RDP
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729KB
18. Table 1 Variance Decompositions. Percentage of Unofficial Cash Rate Explained by Shock to. ... October 1987 period. However, shocks to cash rates have had. very little discernible effect on the exchange rate.
https://www.rba.gov.au/publications/rdp/1990/pdf/rdp9009.pdf
MARTIN Has Its Place: A Macroeconometric Model of the Australian Economy
20 Aug 2019
RDP
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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
Box B: Variable Interest Rates on Housing Loans
25 Sep 2005
FSR
- March 2005
PDF
53KB
https://www.rba.gov.au/publications/fsr/2005/mar/pdf/box-b.pdf
MARTIN Gets a Bank Account: Adding a Banking Sector to the RBA’s Macroeconometric Model
12 Jan 2022
RDP
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1774KB
Suthakar 2021; Hack and Nicholls 2021). With deposit rates unable to move below zero, cash rate. ... components: changes in the cash rate, changes in banks’ debt/deposit funding spreads and.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-01.pdf
Monetary Policy, Equity Markets and the Information Effect
24 Oct 2021
RDP
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1573KB
prescription. For example, if the conventional effects of cash rate changes (e.g. ... approximation of the 3 to 5-year growth rate. Cash rate change Monetary policy surprise-4.
https://www.rba.gov.au/publications/rdp/2021/pdf/rdp2021-04.pdf
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
Financial Stability Review - September 2004
6 Jan 2005
FSR
PDF
1099KB
Another potentially useful indicator of household fi nancial stress is the rate of growth in credit card cash advances. ... Since then, however, the growth rate of aggregate cash advances has slowed, and the average amount drawn per account has stabilised
https://www.rba.gov.au/publications/fsr/2004/sep/pdf/0904.pdf
The Impact of Interest Rates on Bank Profitability: A Retrospective Assessment Using New Cross-country Bank-level Data
8 Jun 2023
RDP
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1310KB
between interest rates and NIMs, with the marginal impact of a cut to the cash rate larger in low. ... pricing power. As a result, following a cut to cash rates, these banks can ensure the fall in their.
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-05.pdf
Financial Stability Review
1 Apr 2004
FSR
PDF
611KB
Offi cial capital fl ows from Asia to the United States, motivated not so much by underlying rates of return but by exchange rate considerations, have been unusually strong. ... This shift is largely explained by the move to a low-infl
https://www.rba.gov.au/publications/fsr/2004/mar/pdf/0304.pdf
How Australians Pay: Evidence from the 2016 Consumer Payments Survey
24 Jul 2017
RDP
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1438KB
5. Cash 16. 5.1 Cash Payments 16. 5.2 Cash Holdings 22. ... survey. Overall, including all payments, transfers, cash top-ups and automatic payments, around.
https://www.rba.gov.au/publications/rdp/2017/pdf/rdp2017-04.pdf