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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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Bridging the Textbook Gaps on How the RBA Implements a Change to the Cash Rate | Teacher Updates | Education

4 May 2023
Changes in the cash rate then flow through to other interest rates in the economy, influencing economic activity and ultimately inflation. ... Because the cash rate acts as a key reference rate, a change to the cash rate has a strong influence over other
https://www.rba.gov.au/education/resources/teacher-updates/bridging-the-textbook-gaps-on-how-the-rba-implements-monetary-policy/

The Consequences of Low Interest Rates for the Australian Banking Sector

21 Dec 2022 RDP 2022-08
Anthony Brassil
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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Compliance with IOSCO Principles | Cash Rate Methodology | Market Operations Resources

15 Jul 2022
Compliance with IOSCO Principles of the methodology of the cash rate.
https://www.rba.gov.au/mkt-operations/resources/cash-rate-methodology/compliance.html

Overview

6 Feb 2024 SMP – February 2024
Overview | Statement on Monetary Policy – February 2024
https://www.rba.gov.au/publications/smp/2024/feb/overview.html

Glossary

22 Jan 2024
A glossary of terms used on the RBA website
https://www.rba.gov.au/glossary/

Expert Judgement used to Determine Cash Rate | Market Operations Resources

9 Mar 2023
Expert Judgement used to Determine Cash Rate
https://www.rba.gov.au/mkt-operations/resources/cash-rate-methodology/expert-judgement.html

Statistical Tables

10 May 2024 Statistics
Household and Business Finances. Interest Rates. Exchange Rates. Share Markets.
https://www.rba.gov.au/statistics/tables/

The Stance of Monetary Policy in a World of Numerous Tools

20 Oct 2020 Speech
Christopher Kent
Speech delivered by Christopher Kent, Assistant Governor (Financial Markets), to the IFR Australia DCM Roundtable Webinar, Online
https://www.rba.gov.au/speeches/2020/sp-ag-2020-10-20.html

Credit Spreads, Monetary Policy and the Price Puzzle

1 Jan 2020 RDP 2020-01
Benjamin Beckers
in risk premia in large business lending rates is met by an 8 basis point cut to the cash rate. ... Table 2: Estimated Policy Rules with Credit Spreads and Expected Cash Rate Changes.
https://www.rba.gov.au/publications/rdp/2020/2020-01/full.html
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Responding to the Economic and Financial Impact of COVID-19

19 Mar 2020 Speech
Philip Lowe
Speech delivered by Philip Lowe, Governor, Sydney
https://www.rba.gov.au/speeches/2020/sp-gov-2020-03-19.html