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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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How the Reserve Bank Implements Monetary Policy | Explainer | Education

26 Jun 2023
This series provides short, concise explanations for various economics topics.

Firms' Investment Decisions and Interest Rates

18 Jun 2015 Bulletin – June 2015
Kevin Lane and Tom Rosewall
Firms typically evaluate investment opportunities by calculating expected rates of return and the payback period (the time taken to recoup the capital outlay). Liaison and survey evidence indicate that Australian firms tend to require expected

2023 | Monetary Policy Decisions

5 Sep 2023
Monetary Policy media releases - statements made by the Governor on monetary policy

Determination of Cash Rates

1 Dec 1992 RDP 9214
Bob Rankin
In practice, it is the unofficial cash rate which is targeted by the Bank (though, as explained later, the unofficial and official cash rates are about equal). ... take action to keep cash rates close to the announced target rate r.
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Review of the RBA’s Approach to Forward Guidance

9 Mar 2023
4 October 2022. Cash rate target increased by 25 basis points. The Board expects to increase interest rates further over the period ahead. ... In November 2021, conditions for a rise in the cash rate were explained as likely to take some time.

About Monetary Policy

25 Jul 2023
Any change to the cash rate target takes effect from the day following the announcement. ... The cash rate and other capital market interest rates then feed through to the whole structure of deposit and lending rates.


18 Sep 2023
The RBA is accountable directly to the Parliament and to the general public for the way it carries out its responsibilities. Includes information on the Boards of the RBA, accountability to, and consultation with, Parliament,information services,

Appendix B: Data Definitions

31 Mar 1999 RDP 1999-03
Andrea Brischetto and Gordon de Brouwer
ABS Cat. No. 6202.03, Table 2. From 1990 onwards, the target cash rate. ... Prior to 1990, the unofficial 11am call cash rate. Reserve Bank of Australia Bulletin, Table F.1.
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Review of the Yield Target

22 Mar 2023
In March 2020, the Reserve Bank Board introduced a target for the yield on the three-year Australian Government bond which was discontinued in November 2021. This review examines the experience with the yield target and draws lessons from this

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.
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