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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Why Do Companies Hold Cash?
1 May 2016
RDP
2016-03
This is our main focus; we leave a more detailed exploration of the links between monetary policy, interest rates and corporate cash to future research. ... The trend increase in the cash holdings of publicly listed companies can be largely explained by
https://www.rba.gov.au/publications/rdp/2016/2016-03/full.html
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Inflation Targeting and Economic Welfare
25 Jul 2019
Speech
Speech delivered by Philip Lowe, Governor, to Anika Foundation Luncheon Supported by NAB and the ABE, Sydney
https://www.rba.gov.au/speeches/2019/sp-gov-2019-07-25.html
The Monetary Policy Transmission Process: What Do We Know? (And What Don't We Know?)
28 Aug 1995
Speech
Talk by Stephen Grenville to the Australian Business Economists, Sydney
https://www.rba.gov.au/speeches/1995/sp-ag-280895.html
Transcript of Question & Answer Session on 08 December 2023
8 Dec 2023
Speech
Transcript of Question & Answer Session , Sydney Banking and Financial Stability Conference, University of Sydney, Sydney
https://www.rba.gov.au/speeches/2023/sp-so-2023-12-08-q-and-a-transcript.html
Semi-Annual Statement on Monetary Policy
10 May 1998
Bulletin
– May 1998
At 5.6 per cent, the yield on 10-year US bonds is barely above the US cash rate – i.e. ... This is because arbitrage by market participants works to ensure that three-month interest rates reflect the expected average cash rate over that period.
https://www.rba.gov.au/publications/bulletin/1998/may/2.html
The Rise in Household Liquidity
10 Nov 2021
RDP
2021-10
The relevant interest rate is derived from RBA statistical table ‘F5 Indicator Lending Rates’. ... Households may respond to this increased risk by increasing their rate of precautionary saving.
https://www.rba.gov.au/publications/rdp/2021/2021-10/full.html
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Anticipatory Monetary Policy and the ‘Price Puzzle’
18 May 2017
RDP
PDF
2157KB
For example, the ‘direct effect’ of interest rates is the difference between the overall inflation response and the response when the coefficients on the cash rate in the inflation equation are ... GDP but only lagged observations on the cash rate
https://www.rba.gov.au/publications/rdp/2017/pdf/rdp2017-02.pdf
The RBA and the Australian Economy
16 Dec 2021
Speech
Speech delivered by Philip Lowe, Governor, to CPA Australia Riverina Forum, Wagga Wagga
https://www.rba.gov.au/speeches/2021/sp-gov-2021-12-16.html
MARTIN Has Its Place: A Macroeconometric Model of the Australian Economy
1 Aug 2019
RDP
2019-07
Business lending rate. Per cent. Nominal. RBA. NBRSP. Business spread to cash rate. ... RBA. NMR. Mortgage rate. Per cent. Nominal. RBA. NMRSP. Mortgage rate spread to cash rate.
https://www.rba.gov.au/publications/rdp/2019/2019-07/full.html
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Housing Market Cycles and Fundamentals
16 May 2024
Speech
Speech delivered by Sarah Hunter, Assistant Governor (Economic), at the REIA Centennial Congress, Hobart
https://www.rba.gov.au/speeches/2024/sp-ag-2024-05-16.html