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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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Changes to Statistical Tables

22 Jun 2022 Statistics
Participants. Further details on the use of Expert Judgement can be found in the Cash Rate Procedures Manual. ... Further details on the use of Expert Judgement can be found in the Cash Rate Procedures Manual.
https://www.rba.gov.au/statistics/tables/changes-to-tables.html

About Monetary Policy

17 Jun 2022
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.
https://www.rba.gov.au/monetary-policy/about.html

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.
https://www.rba.gov.au/publications/rdp/1992/9214/determination-of-cash-rates.html
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Videos | Education

18 Jul 2022
Conventional Monetary Policy Tools: the Cash Rate Target. 20 January 2021. ... We set the official interest rate for Australia, which is called the cash rate.
https://www.rba.gov.au/education/resources/videos.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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Operations in Financial Markets

12 Apr 2020 RBA Annual Report – 2020
The cash rate is the interest rate on unsecured overnight loans between banks. ... at an interest rate of 25 basis points above the cash rate target.
https://www.rba.gov.au/publications/annual-reports/rba/2020/operations-in-financial-markets.html

Reserve Bank of Australia Annual Report 2021

30 Jun 2022 RBA Annual Report 2021 PDF 6704KB
https://www.rba.gov.au/publications/annual-reports/rba/2021/pdf/2021-report.pdf

Firms' Investment Decisions and Interest Rates

10 Jun 2015 Bulletin – June Quarter 2015
Kevin Lane and Tom Rosewall
Changes in interest rates influence the cost of debt and, under reasonable assumptions, the cost of equity, and so should influence the hurdle rate. ... For example, a reduction in interest rates may improve firms' cash flows through reductions in
https://www.rba.gov.au/publications/bulletin/2015/jun/1.html

BA-MARTIN in Detail

18 Jan 2022 RDP 2022-01
Peter Rickards
cash rate and banks' cost of funding increases as the cash rate falls. ... By cash rate level. The lending spreads banks charge above their costs of debt funding have historically been unrelated to the level of interest rates (see Graph 13 in Garner and
https://www.rba.gov.au/publications/rdp/2022/2022-01/ba-martin-in-detail.html

The Rise in Household Liquidity

24 Nov 2021 RDP PDF 1793KB
Midrigan forthcoming). The higher rate of saving has occurred through both amortising mortgage. ... projection methods to demonstrate that lower interest rates are associated with higher household.
https://www.rba.gov.au/publications/rdp/2021/pdf/rdp2021-10.pdf