Search: cash rate explained

Sort by: Relevance Date
13 of 3 collapsed search results for 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.

Search Results

The Implementation of Monetary Policy in Australia

1 Jul 1997 RDP 9703
Ric Battellino, John Broadbent and Philip Lowe
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/1997/9703.html

The Australian Framework for Implementing Monetary Policy

1 Jul 1997 RDP 9703
Ric Battellino, John Broadbent and Philip Lowe
where r. t. is the actual cash rate and. is the target cash rate. ... First, in the earlier period the absolute daily changes in the cash rate were much larger and much less well explained by movements in the ‘target rate’.
https://www.rba.gov.au/publications/rdp/1997/9703/australian-framework-implementing-monetary.html

The Thinking Underlying Current Arrangements

1 Jul 1997 RDP 9703
Ric Battellino, John Broadbent and Philip Lowe
The process of announcing changes to the cash rate target has some of the same characteristics as a system of administered interest rates, and there was therefore some concern, when the ... The results also confirm that the larger is the change in the
https://www.rba.gov.au/publications/rdp/1997/9703/thinking-underlying-current-arrangements.html