What does the RBA cash rate mean?
The Reserve Bank of Australia (RBA) meets every month to determine what direction to take the cash rate. This cash rate is also called the overnight rate which is the rate on overnight loans in the money market. Banks make a profit from lending out money and charging a higher interest rate than the cost of the money. Their main source of funding is from the deposits that they receive from customers. Transactions take place every day within banks where …
