6 Questions
What is the cash rate?
The interest rate that banks pay to borrow funds from other banks in the money market overnight
Who decides whether to change or maintain the cash rate target?
The Reserve Bank Board
What are the monetary policy objectives of the Reserve Bank?
To keep consumer price inflation between 2 and 3 per cent, on average, over time
What is the main purpose of the cash rate?
To influence all other interest rates in the economy
What is the range of consumer price inflation that the Reserve Bank aims to keep, on average, over time?
2-3%
When does the Reserve Bank Board meet to decide the cash rate, and where do they usually gather?
On the first Tuesday of each month, except December, at the Reserve Bank headquarters in Sydney
How well do you know the cash rate? Test your knowledge on the interest rate that drives the Australian economy. Discover its impact on mortgage rates and deposit rates, and learn about its role in managing liquidity between banks. Take this quiz and become an expert on the cash rate!
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