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.
Search Results
The Demand for Money in Australia: New Tests on an Old Topic
30 Nov 2009
RDP
PDF
135KB
In the presentation of theresults, the inflation rate is not included since we found that it did not containexplanatory power in addition to nominal interest rates.1. ... short-term rate changes were expected to endure, such that theyaffected rates
https://www.rba.gov.au/publications/rdp/1993/pdf/rdp9314.pdf
Pricing Behaviour in Australian Financial Futures Markets
19 Nov 2012
RDP
PDF
942KB
futures could not be explained by an efficient arbitrage model, and a similar. ... than the interest rate. In this case we would expect the systematic component.
https://www.rba.gov.au/publications/rdp/1988/pdf/rdp8804.pdf
Disagreement about Inflation Expectations
12 May 2016
RDP
PDF
1105KB
expectations includes extreme values that cannot be explained by informed processing of available. ... First, the extent to which it can be explained by macroeconomic news surprises.
https://www.rba.gov.au/publications/rdp/2016/pdf/rdp2016-02.pdf
How Risky is Australian Household Debt?
19 Aug 2020
RDP
PDF
1880KB
vulnerabilities. For example, rising incomes or structurally lower nominal interest rates both allow. ... Global interest rates will be an. appropriate instrument for each country’s rate to the extent that country’s economy does not drive global
https://www.rba.gov.au/publications/rdp/2020/pdf/rdp2020-05.pdf
The Property Ladder after the Financial Crisis: The First Step is a Stretch but Those Who Make It Are Doing OK
6 Sep 2017
RDP
PDF
1368KB
interest rates or households’ expected income. The majority of papers, however, have focused on. ... price index, state first home buyer government incentives, variable mortgage rates, urban area.
https://www.rba.gov.au/publications/rdp/2017/pdf/rdp2017-05.pdf
A Multi-sector Model of the Australian Economy
14 May 2015
RDP
PDF
1314KB
Together, thesethree parameters imply that the model’s steady-state cash rate is equal to 6 per cent. ... We scale the shock sothat the median cash rate response is 100 basis points on impact.10.
https://www.rba.gov.au/publications/rdp/2015/pdf/rdp2015-07.pdf
Exchange Rate Movements and the Australian Economy
4 Feb 2015
RDP
PDF
1416KB
We identify exchange rate shocks as any movement in the exchange rate not explained by other economic factors, such as interest rates or the terms of trade. ... This is consistent with the observation that movements in nominal exchange rates (which
https://www.rba.gov.au/publications/rdp/2014/pdf/rdp2014-11.pdf
Why Do Companies Hold Cash?
12 May 2016
RDP
PDF
1105KB
interest rates and corporate cash to future research. To preview our main results, we find that:. ... costs play some role in determining cash holdings. 2. The trend increase in the cash holdings of publicly listed companies can be largely explained by.
https://www.rba.gov.au/publications/rdp/2016/pdf/rdp2016-03.pdf
Where’s the Money‽ An Investigation into the Whereabouts and Uses of Australian Banknotes
11 Dec 2018
RDP
PDF
1641KB
the rate at which banknotes pass through depots is an indication of transactional cash use. ... interest rates. Unlike card payments, however, the value of cash payments is not observed directly.
https://www.rba.gov.au/publications/rdp/2018/pdf/rdp2018-12.pdf
Identifying Interbank Loans from Payments Data
6 Dec 2016
RDP
PDF
3267KB
Figure 2: Implied Interest Rates of Algorithm Matches. Implied rate of simple interest, deviation from target cash rate, 2015. ... cash rate), so there should be very few false positives (some studies exhibit high rates of false.
https://www.rba.gov.au/publications/rdp/2016/pdf/rdp2016-11.pdf