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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Monetary Policy in Australia: Complementarities and Trade-offs
26 Oct 2023
Speech
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821KB
Speech - 2023
https://www.rba.gov.au/speeches/2023/pdf/sp-gov-2023-10-24.pdf
Uncertainty and Risk Aversion – Before and After the Pandemic
7 Jun 2021
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282KB
Speech | 2021
https://www.rba.gov.au/speeches/2021/pdf/sp-so-2021-06-02.pdf
Speech The Changing Nature of Investment Philip Lowe Governor ...
7 Mar 2018
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294KB
During this period, the RBAhighlighted high hurdle rates of return and a lack of animal spirits. ... Incontrast, investment in intellectual property has grown at an average rate of 5 per cent.
https://www.rba.gov.au/speeches/2018/pdf/sp-gov-2018-03-07.pdf
Inflation Targeting and Economic Welfare
25 Jul 2019
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357KB
As the evidence accumulated in support of these propositions, the outlook for monetary policychanged and the Board lowered the cash rate in June and July. ... These two recent reductions in the cash rate will support demand in the Australian economy.
https://www.rba.gov.au/speeches/2019/pdf/sp-gov-2019-07-25.pdf
The RBA and the Australian Economy
16 Dec 2021
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367KB
At some point in the future, interest rates will increase from these record lows. ... range. We are still a fair way from thatpoint. In our central scenario, the condition for an increase in the cash rate will not be met next year.It is likely
https://www.rba.gov.au/speeches/2021/pdf/sp-gov-2021-12-16.pdf
12/04/2018 Regional Variation in a National Economy | Speeches ...
11 Apr 2018
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479KB
As you are aware, the Reserve Bank Board has held the cash rate steady at 1 per cent sinceAugust 2016. ... The last increase in the cash rate was more than sevenyears ago, so an increase will come as a shock to some people.
https://www.rba.gov.au/speeches/2018/pdf/sp-gov-2018-04-11.pdf
On Lags
21 Aug 2018
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227KB
If things turn outbroadly as we expect, it is therefore more likely that the next move in the cash rate will be up thandown. ... Lower interest rates also reduce the servicingburden on existing debt, which can free up some cash to spend more.
https://www.rba.gov.au/speeches/2018/pdf/sp-ag-2018-08-17.pdf
Watching the Invisibles
13 Jun 2019
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380KB
Theunemployment rate has reached multi-decade lows in several economies. Wages growth has beenpicking up for a while, suggesting that the unemployment rates in these countries are now belowwhatever their NAIRU ... As the Governor explained last week,
https://www.rba.gov.au/speeches/2019/pdf/sp-ag-2019-06-12-2.pdf
13/11/2017 Business Investment in Australia | Speeches ...
13 Nov 2017
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381KB
Companies havereduced their gearing and increased their cash holdings, and hurdle rates remain relatively highdespite falls in borrowing rates. ... Lane K and T Rosewall (2015), ‘Firms' Investment Decisions and Interest Rates’,RBA Bulletin, June, pp
https://www.rba.gov.au/speeches/2017/pdf/sp-dg-2017-11-13.pdf
Policymaking at the Reserve Bank
18 Oct 2022
Speech
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489KB
Speech - 2022
https://www.rba.gov.au/speeches/2022/pdf/sp-dg-2022-10-18.pdf