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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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Key Financial Developments Since the Wallis Inquiry | Submission to the Financial System Inquiry – March 2014 | Financial Sector |…

1 Mar 2014 Submissions
Over the same period, the interest rates earned by savers on deposits have increased relative to the cash rate. ... Lending rates in Australia nonetheless remain well anchored to changes in the cash rate.
https://www.rba.gov.au/publications/submissions/financial-sector/financial-system-inquiry-2014-03/financial-developments-since-wallis-inquiry.html

Submission to the Inquiry into Affordable Housing–February 2014 | Housing and Housing Finance | Submissions

1 Feb 2014 Submissions
2007. The spread between variable mortgage rates and the Reserve Bank's cash rate has widened since the crisis, but this is almost entirely attributable to the increase in lenders' funding ... costs relative to the cash rate and is similar to the
https://www.rba.gov.au/publications/submissions/housing-and-housing-finance/inquiry-affordable-housing/

Competition in the Payments System | Submission to the Productivity Commission Inquiry – September 2017 | Financial Sector | Submissions

6 Sep 2017 Submissions
These rates have changed very little since 2010, despite a fall of over 3 percentage points in the cash rate over this period. ... The actual interest rates paid on credit cards will be lower than advertised rates to the extent that cardholders switch
https://www.rba.gov.au/publications/submissions/financial-sector/competition-in-the-financial-system/competition-in-the-payments-system.html

Competition in Banking | Submission to the Inquiry into the Australian Banking Industry – January 1991 | Financial Sector | Submissions

1 Jan 1991 Submissions
Interest rates have fluctuated within wide limits (cash rates, for example, have ranged between 10 and 18 per cent since 1983) but in terms of day-to-day movements in interest ... the removal of interest rate controls and competition among banks for
https://www.rba.gov.au/publications/submissions/financial-sector/inquiry-australian-banking-industry/competition-in-banking.html

Housing Finance | Submission to the inquiry into Competition in the Banking and Non-Banking Sectors – July 2008 | Financial Sector |…

10 Jul 2008 Submissions
Since the mid 1990s it has become common practice for banks to move their indicator rates in line with the Reserve Bank's cash rate. ... Similarly, money-market interest rates have tended to move broadly in line with the cash rate.
https://www.rba.gov.au/publications/submissions/financial-sector/inquiry-competition-in-banking-and-non-banking-sector/housing-finance.html

Introduction | Submission to the Productivity Commission Inquiry – September 2017 | Financial Sector | Submissions

6 Sep 2017 Submissions
Regulatory changes have also encouraged this trend. While the effects have varied between deposit products, average deposit rates relative to the cash rate have risen, while average account fees have fallen; ... Measures aimed at open banking and
https://www.rba.gov.au/publications/submissions/financial-sector/competition-in-the-financial-system/introduction.html

List of graphs | Submission to the Financial System Inquiry March 2014 | Financial Sector | Submissions

1 Mar 2014 Submissions
Graph 6.6: Interest Margins on Variable-rate Mortgages. ... Graph 8.1: Non-cash Payments per Capita.
https://www.rba.gov.au/publications/submissions/financial-sector/financial-system-inquiry-2014-03/graphs.html

The Role of the Financial Sector | Submission to the Financial System Inquiry – March 2014 | Financial Sector | Submissions

1 Mar 2014 Submissions
Liquidity: a means of converting assets into cash without undue loss of value. ... market. From day to day, the Reserve Bank's goal is to manage supply to meet the system's demand for cash at the price – the interest rate – set by the
https://www.rba.gov.au/publications/submissions/financial-sector/financial-system-inquiry-2014-03/role-of-financial-sector.html

Feasibility of Further Expansion | Report to the Inquiry into Competition in the Banking and Non-Banking Sectors – May 2009 | Financial…

7 May 2009 Submissions
ultimately compromise the Bank's ability to manage liquidity in the overnight cash market and thereby compromise the stability of the cash rate. ... With funds maturing less often, fewer funds are available for the primary purpose of short-term liquidity
https://www.rba.gov.au/publications/submissions/financial-sector/inquiry-report-2009-05/feasibility-of-further-expansion.html

Submission to the Inquiry into Family Business in Australia – October 2012 | Financial Sector | Submissions

31 Oct 2012 Submissions
Submission to the Inquiry into Family Business in Australia - October 2012
https://www.rba.gov.au/publications/submissions/financial-sector/inquiry-family-business-2012.html