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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A Model of the Australian Housing Market
5 Mar 2019
RDP
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1639KB
few years can be explained by the fall in interest rates – some of this fall reflects lower world real. ... government bond yield, cash is the cash rate, inflation is 10-year inflation compensation derived from indexed bonds.
https://www.rba.gov.au/publications/rdp/2019/pdf/rdp2019-01.pdf
Monthly Movements in the Australian Dollar and Real Short-term Interest Differentials: An Application of the Kalman Filter
19 Apr 2007
RDP
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487KB
In particular, the relationship between the real exchange rate and real interest rates has fallen under scrutiny since the late 1980s. ... For example, domestic unofficial cash rates have been reduced by more than seven per cent since December 1989,
https://www.rba.gov.au/publications/rdp/1991/pdf/rdp9111.pdf
A Tale of Two Surveys: Household Debt and Financial Constraints in Australia
2 Dec 2009
RDP
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168KB
Most of the other cash flow problems can be explained by households being unable to pay registration or insurance on time (29 per cent) or because they had to ask family ... The fall in interest income can be explained by lower retail deposit and
https://www.rba.gov.au/publications/rdp/2003/pdf/rdp2003-08.pdf
The Lags of Monetary Policy
1 Dec 2009
RDP
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246KB
To begin at the beginning, however, the first source of monetary policy lags is thedelay in pass-through of changes in the overnight cash rate to other interest rates.While the ... The headline measure is more widelyreported but is directly affected by
https://www.rba.gov.au/publications/rdp/1997/pdf/rdp9702.pdf
Measuring Economic Uncertainty and Its Effects
22 Feb 2016
RDP
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1096KB
available monthly: retail sales growth; the cash rate; and ANZ-Roy Morgan consumer confidence.20. ... variables. Such a response of the cash rate might help mitigate the effects of uncertainty on.
https://www.rba.gov.au/publications/rdp/2016/pdf/rdp2016-01.pdf
The Cost of Equity Capital in Australia: What Can We Learn from International Equity Returns?
18 Apr 2007
RDP
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445KB
In the corporate finance literature, these last two adjustments would typically be made at the cash flow level, before applying the cost of funds as the discount rate. ... The population adjustments are approximate, and use the average population rate
https://www.rba.gov.au/publications/rdp/1991/pdf/rdp9107.pdf
A Sectoral Model of the Australian Economy
13 May 2008
RDP
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220KB
The inclusion of the overnight cash rate (cash) and a measure of the real exchange rate (rtwi) is standard (Brischetto and Voss 1999; Dungey and Pagan 2000; Berkelmans 2005). ... Figure 2: Responses to a 25 Basis Point Increase in the Cash Rate.
https://www.rba.gov.au/publications/rdp/2008/pdf/rdp2008-01.pdf
How Many Jobs Did JobKeeper Keep?
2 Dec 2020
RDP
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1843KB
adjustments to payment rates (‘JobKeeper 2.0’). There were some further modifications announced. ... RBA 2020).4. Second, the $1,500 payment rate also acted as a wage floor.
https://www.rba.gov.au/publications/rdp/2020/pdf/rdp2020-07.pdf
Consumption and Permanent Income: The Australian Case
19 Nov 2012
RDP
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865KB
subject to A t1. : (1rt)(At yt - Ct). where & : rate of time preference. ... return on financial assets) and r (the real rate used to discount future.
https://www.rba.gov.au/publications/rdp/1988/pdf/rdp8808.pdf
Household Economic Inequality in Australia
25 Oct 2017
RDP
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4842KB
11. (which has tended to reduce inequality), which is consistent with the substantialtrend decline in the unemployment rate since the early 1990s. ... Furthermore,the average rate of home ownership is higher amongst low-income householdsthan amongst
https://www.rba.gov.au/publications/rdp/2015/pdf/rdp2015-15.pdf