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RBA Glossary definition for cash rate target

cash rate target – As in most developed countries, the stance of monetary policy in Australia is expressed in terms of a target for an overnight interest rate. The rate used by the Reserve Bank of Australia is the cash rate (also known as the interbank overnight rate). When the Reserve Bank Board decides that a change in monetary policy should occur, it specifies a new target for the cash rate. A decision to ease policy is reflected in a new lower target for the cash rate, while a decision to tighten policy is reflected in a higher target.

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

12 Jan 2022 RDP PDF 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

A Model of the Australian Housing Market

1 Mar 2019 RDP 2019-01
Trent Saunders and Peter Tulip
It estimates responses to interest rates, allowing for feedback between quantities and prices. ... So long-term interest rates enter the user cost. However, housing prices seem to also respond to variable mortgage rates in the short run, possibly because
https://www.rba.gov.au/publications/rdp/2019/2019-01/full.html
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Consumer Payment Behaviour in Australia: Evidence from the 2019 Consumer Payments Survey

14 Sep 2020 RDP 2020-06
James Caddy, Luc Delaney and Chay Fisher
76. 45. 48. Average number of cash top-ups per person per week. ... Note: Share of respondents who reported using cash withdrawal and/or deposit services.
https://www.rba.gov.au/publications/rdp/2020/2020-06/full.html
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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

How Australians Pay: Evidence from the 2016 Consumer Payments Survey

1 Jul 2017 RDP 2017-04
Mary-Alice Doyle, Chay Fisher, Ed Tellez and Anirudh Yadav
amount, source) and the amount of cash they held after the top-up. ... Similarly, higher-income consumers have switched away from cash towards cards at a faster rate than respondents with lower incomes in recent years.
https://www.rba.gov.au/publications/rdp/2017/2017-04/full.html
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Robustness Exercises

3 Jan 2023 RDP 2022-09
Matthew Read
Although the robust credible intervals are narrower in the inflation-targeting period (compare Figures 6 and 9), this seems to largely reflect that the impact response of the cash rate is ... t. is restricted to be non-negative, so the central bank does
https://www.rba.gov.au/publications/rdp/2022/2022-09/robustness-exercises.html
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Can We Use High-frequency Yield Data to Better Understand the Effects of Monetary Policy and Its Communication? Yes and No!

1 Apr 2023 RDP 2023-04
Jonathan Hambur
Many papers incorporate specific interest rates, such as the cash rate, or other short-term interest rates. ... The cash rate was reduced to around the effective lower bound, and various unconventional policies were introduced, including a yield curve
https://www.rba.gov.au/publications/rdp/2023/2023-04/full.html
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Where's the Money? An Investigation into the Whereabouts and Uses of Australian Banknotes

1 Dec 2018 RDP 2018-12
Richard Finlay, Andrew Staib and Max Wakefield
While we believe that the loss rates of paper banknotes serves as a reasonable indicator for the loss rate of polymer banknotes, there are some important reasons why they may differ. ... Thus, broadly speaking, only the transactional stock of banknotes
https://www.rba.gov.au/publications/rdp/2018/2018-12/full.html
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Why Do Companies Fail?

1 Nov 2016 RDP 2016-09
Rose Kenney, Gianni La Cava and David Rodgers
H2: Within public companies, listed companies should have particularly high rates of failure, on average. ... We measure liquidity as the ratio of cash (and cash equivalents) to total assets.
https://www.rba.gov.au/publications/rdp/2016/2016-09/full.html
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Credit Spreads, Monetary Policy and the Price Puzzle

23 Jan 2020 RDP PDF 1959KB
as indicated by low risk premia in lending and money market rates) by raising the cash rate over. ... premia in large business lending rates is met by an 8 basis point cut to the cash rate.
https://www.rba.gov.au/publications/rdp/2020/pdf/rdp2020-01.pdf