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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.

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Submission to Payments System Review – January 2021 | Responses and Options Paper

25 May 2023 Submissions
how it sets interest rates and uses other monetary policy tools to achieve those goals. ... Graph 1. Graph 2. The use of cash for payment transactions has continued to decline.
https://www.rba.gov.au/publications/submissions/payments-system/submission-to-payments-system-review-01-2021/index.html

Appendix A: Trends in the Australian Financial System | Submission to the Financial System Inquiry – 6 September 1996 | Financial Sector |…

6 Sep 1996 Submissions
These concerns partly reflected the fact that key lending rates fell less than one-for-one with cash rates during the extended period of cash-rate reductions in the early 1990s, ... Secondly, abstracting from cyclical movements, both deposit and lending
https://www.rba.gov.au/publications/submissions/financial-sector/financial-system-inquiry-1996/appendix-a.html

Key Financial Developments Since the Wallis Inquiry | Submission to the Financial System Inquiry – March 2014 | Financial Sector |…

1 Mar 2014 Submissions
Over the same period, the interest rates earned by savers on deposits have increased relative to the cash rate. ... Lending rates in Australia nonetheless remain well anchored to changes in the cash rate.
https://www.rba.gov.au/publications/submissions/financial-sector/financial-system-inquiry-2014-03/financial-developments-since-wallis-inquiry.html

Supplementary Submission to NESA Review of Commerce Years 7–10 Syllabus – July 2018 | Education | Submissions

30 Jul 2018 Submissions
Supplementary Submission to NESA Review of Commerce Years 7–10 Syllabus - July 2018
https://www.rba.gov.au/publications/submissions/other/submission-to-nesa-review-of-commerce-years-7-10-syllabus-2018/

Conclusion | Report to the Inquiry into Competition in the Banking and Non-Banking Sectors – May 2009 | Financial Sector | Submissions

7 May 2009 Submissions
Download 96. KB. The primary purpose of the Reserve Bank's open market operations is to ensure that the cash rate remains at, or close to, the target set by the ... This, in turn, would entail a higher risk of instability of the cash rate.
https://www.rba.gov.au/publications/submissions/financial-sector/inquiry-report-2009-05/conclusion.html

The Reserve Bank's Response | Report to the Inquiry into Competition in the Banking and Non-Banking Sectors – May 2009 | Financial Sector | …

7 May 2009 Submissions
The operational target for monetary policy in Australia is the cash rate – the overnight interest rate paid on unsecured loans between banks. ... The target for the cash rate is established at the monthly meetings of the Reserve Bank Board.
https://www.rba.gov.au/publications/submissions/financial-sector/inquiry-report-2009-05/reserve-bank-response.html

List of graphs | Submission to the Financial System Inquiry March 2014 | Financial Sector | Submissions

1 Mar 2014 Submissions
Graph 6.6: Interest Margins on Variable-rate Mortgages. ... Graph 7.11: Pension Funds' Current and Target Allocations to Infrastructure Assets.
https://www.rba.gov.au/publications/submissions/financial-sector/financial-system-inquiry-2014-03/graphs.html

Developments and Innovation in the Payments System | Submission to the Financial System Inquiry – March 2014 | Financial Sector |…

1 Mar 2014 Submissions
This study provided particular insight into the use of cash by consumers for transaction purposes. ... In practice, the schemes have set a large number of different interchange fee rates for different types of transactions, with the weighted average
https://www.rba.gov.au/publications/submissions/financial-sector/financial-system-inquiry-2014-03/developments-and-innovation.html

Recent Developments in State Level Economic Activity and Inflation – April 2008

30 Apr 2008 Submissions
Recent Developments in State Level Economic Activity and Inflation - 30 April 2008
https://www.rba.gov.au/publications/submissions/economic-activity/recent-developments-in-state-level-economic-activity-and-inflation/

Housing Finance | Submission to the inquiry into Competition in the Banking and Non-Banking Sectors – July 2008 | Financial Sector |…

10 Jul 2008 Submissions
Since the mid 1990s it has become common practice for banks to move their indicator rates in line with the Reserve Bank's cash rate. ... Similarly, money-market interest rates have tended to move broadly in line with the cash rate.
https://www.rba.gov.au/publications/submissions/financial-sector/inquiry-competition-in-banking-and-non-banking-sector/housing-finance.html