An Overview of Domestic Market Operations
This post will help you to understand the role of the Reserve Bank of Australia (RBA) determines the cash rate, as part of your Prelim Economics course. Domestic market operations refer to the activities undertaken by the RBA to determine the cash rate. The process involves the buying and selling of government securities and bonds to influence the level of available cash in the financial sector, mainly affecting banks and financial institutions. This is also known as the implementation of monetary policy.
The video below explains domestic market operations in more detail.
