BackCountrySnow
Active Member
Explain the relationship between the RBA and other Australian banks and financial intermediaries. How does the RBA influence domestic interest rates by controlling the cash rate?
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relationship b/w RBA and Australian banks (1 Viewer)
- Thread starter BackCountrySnow
- Start date
the cash rate is the interest rate at which the bank /financial institutions borrows from the RBA , and banks put a margin on it, and if it goes up they pass on the extra costs and when the cash rate goes down they are encouraged to pass on the savings to be competetive?