The cash rate is the interest rate financial institutions pay to borrow or charge to lend funds in the money market on an overnight basis. The Reserve Bank of Australia uses a narrower definition of the cash rate as an operational target for the implementation of monetary policy. The Reserve Bank of Australia's measure of the cash rate is the interest rate which banks pay or charge to borrow funds from or lend funds to other banks on an overnight unsecured basis. This measure is also known as the interbank overnight rate. The Reserve Bank of Australia calculates and publishes this cash rate each day on the basis of data collected directly from banks. This measure of the cash rate has been published by the Reserve Bank of Australia since June 1998.
ndia's one-day cash rate was range-bound at 8.00/8.05 per cent versus previous close of 7.95/8.00 per cent. Banks' borrowing via the repo window fell to Rs 223.0 billion, as cash deficit remains comfortable a day before reserves reporting.
Dealers expect the cash deficit to remain within manageable levels at around Rs 200-500 billion in the near term, making it unlikely the central bank will step in to buy bonds via open market operations.
Total volumes in the call money market were at Rs 102.90 billion at a weighted average rate of 7.99 per cent. The total volume in the CBLO market was at Rs 494.58 billion, at a weighted average rate of 7.94 per cent
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