3 Questions
What is the cash rate and how does it influence interest rates in the economy?
The cash rate is the interest rate that banks pay to borrow funds from other banks in the money market overnight. It influences all other interest rates, including mortgage and deposit rates.
Who decides whether to change or maintain the cash rate target?
The Reserve Bank Board decides whether to change or maintain the cash rate target. The Board comprises the Governor, Deputy Governor, Secretary to the Australian Treasury and six other members appointed by the Treasurer.
What are the objectives of the Reserve Bank of Australia's monetary policy?
To support the stability of the currency, full employment, and the economic prosperity and welfare of the people of Australia.
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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