An Overview of the Cash Rate and its Ability to Influence Market Interest Rates
This post will help you to understand the influence of the cash rate on market interest rates, as part of your Prelim Economics syllabus. The cash rate is the overnight money market interest rate, set by the Reserve Bank of Australia. It is not the same as common interest rates that we see on home loans, savings accounts or credit cards.
The video below explains how the cash rate influences the rest of the economy’s interest rates and financial institutions.
