Search: cash rate target

Sort by: Relevance Date
110 of 6,913 search results for cash rate target

RBA Glossary definition for cash rate target

cash rate target – As in most developed countries, the stance of monetary policy in Australia is expressed in terms of a target for an overnight interest rate. The rate used by the Reserve Bank of Australia is the cash rate (also known as the interbank overnight rate). When the Reserve Bank Board decides that a change in monetary policy should occur, it specifies a new target for the cash rate. A decision to ease policy is reflected in a new lower target for the cash rate, while a decision to tighten policy is reflected in a higher target.

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

Cash Rate Target

9 Mar 2023 Statistics
Interest Rate Decisions about the cash rate

Cash Rate Target Overview

22 Mar 2023
Banks can also borrow funds from the Reserve Bank at a little above the target cash rate. ... The Reserve Bank Board decides whether to change or maintain the cash rate target.

Supporting the Economy and Financial System in Response to COVID-19

9 Mar 2023
The Reserve Bank Board reduced the cash rate twice in March 2020, to 0.25 per cent, and to 0.1 per cent on 3 November 2020. ... to start the process of normalising monetary conditions by raising the cash rate in May 2022.

How the Reserve Bank Implements Monetary Policy | Explainer | Education

26 Jun 2023
This series provides short, concise explanations for various economics topics.

The Stance of Monetary Policy in a World of Numerous Tools

20 Oct 2020 Speech
Christopher Kent
Speech delivered by Christopher Kent, Assistant Governor (Financial Markets), to the IFR Australia DCM Roundtable Webinar, Online

Bridging the Textbook Gaps on How the RBA Implements a Change to the Cash Rate | Teacher Updates | Education

4 May 2023
Consequently, the price of transactions has historically gravitated towards the cash rate target inside the corridor. ... Figure 6. In practice, the market moved automatically, and immediately, to the new cash rate target.

The Reserve Bank's Policy Actions and Balance Sheet

30 Jun 2020 Speech
Guy Debelle
Speech delivered by Guy Debelle, Deputy Governor, The Economic Society Australia, Webinar


9 Jun 2023
A glossary of terms used on the RBA website

Review of the Yield Target

22 Mar 2023
In March 2020, the Reserve Bank Board introduced a target for the yield on the three-year Australian Government bond which was discontinued in November 2021. This review examines the experience with the yield target and draws lessons from this

Australia and the Global Economy – The Terms of Trade Boom | Explainer | Education

26 May 2023
This series provides short, concise explanations for various economics topics.