The Reserve Bank of Australia (HSC SSCE Economics): Flashcards

Australia's central bank

Interest rate in overnight money market between banks

RBA's use of interest rates to influence economic activity

Bank accounts at RBA used to settle interbank payments

Mechanism constraining cash rate within $0.25$ ppt of target

Target $- 0.25$ ppt; min rate banks will lend at

Target $+ 0.25$ ppt; max rate banks will borrow at

RBA buying/selling securities to control ES fund supply

Raising rates to reduce economic activity

Lowering rates to stimulate economic activity