By guest contributor Terry Toohey, Senior Consultant, Ex-Head of Westpac fixed interest
Australia’s official interest rate is known as the overnight cash rate, or just the cash rate for short. It is the rate at which banks and other financial institutions which have accounts at the RBA borrow from and lend to each other on an overnight basis. However, it also forms the basis for interest rates in the wider economy due to the ability of banks and other institutions to...