Search: cash rate explained
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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Household and Business Balance Sheets
24 Sep 2012
FSR
– September 2012
PDF
267KB
https://www.rba.gov.au/publications/fsr/2012/sep/pdf/house-bus-bal-sheet.pdf
Financial Intermediaries
10 Sep 2006
FSR
– September 2006
The average interest rate on these accounts is 5.8 per cent, only slightly below the current cash rate of 6 per cent. ... sector. Bank deposits are currently growing at an annual rate of around 10 per cent, compared to rates of around 5 per cent
https://www.rba.gov.au/publications/fsr/2006/sep/fin-intermed.html
Box B: Business Failure Risk in the COVID-19 Pandemic
4 Nov 2020
FSR
- October 2020
PDF
281KB
https://www.rba.gov.au/publications/fsr/2020/oct/pdf/box-b-business-failure-risk-in-the-covid-pandemic.pdf
The Macroeconomic and Financial Environment
10 Mar 2007
FSR
– March 2007
world. Over this period, the world economy has grown at well above its long-run trend rate and both short- and long-term interest rates have been below average, and at ... This has been more evident in larger loans, with the spread to the cash rate for
https://www.rba.gov.au/publications/fsr/2007/mar/mac-fin-env.html
The Australian Financial System
21 Apr 2017
FSR
– April 2017
Review. , and is now above the rate for owner-occupier housing credit in six-month-ended annualised terms. ... the levels prevailing pre-crisis, despite a large decline in risk-free rates.
https://www.rba.gov.au/publications/fsr/2017/apr/aus-fin-sys.html
Financial Intermediaries
10 Mar 2005
FSR
– March 2005
Most of the decline occurred by 1997, with the spread being stable over recent years as standard variable mortgage rates have generally moved in lock-step with the cash rate. ... This has compressed margins since banks' funding costs are determined, in
https://www.rba.gov.au/publications/fsr/2005/mar/fin-intermed.html
The Macroeconomic Environment
10 Mar 2004
FSR
– March 2004
This shift is largely explained by the move to a low-inflation/low-interest-rate environment, which significantly increased the capacity of households to borrow. ... In the past few years, Australian firms have become more exposed to fluctuations in
https://www.rba.gov.au/publications/fsr/2004/mar/mac-env.html
The Macroeconomic and Financial Environment
10 Sep 2005
FSR
– September 2005
In North America, household debt is currently growing at around the fastest rate for more than a decade, and while growth rates in household debt have recently eased in Australia, New ... In most other capital cities, prices have risen, albeit at much
https://www.rba.gov.au/publications/fsr/2005/sep/mac-fin-env.html
Financial Intermediaries
10 Sep 2005
FSR
– September 2005
The average online interest rate is currently 5.4 per cent, just below the cash rate of 5 per cent, with a number of banks offering interest rates at or above ... the cash rate (to which many loan rates are implicitly linked).
https://www.rba.gov.au/publications/fsr/2005/sep/fin-intermed.html
The Macroeconomic and Financial Environment
10 Sep 2006
FSR
– September 2006
The process is most advanced in the United States, with the Federal Reserve having increased official interest rates for a 17th consecutive time in June; the federal funds rate now stands ... years. In part, this is explained by the wider availability of
https://www.rba.gov.au/publications/fsr/2006/sep/mac-fin-env.html