Descriptions for Domestic Market Operations Images

Graph 1: Cash Rate

This graph shows daily data on the target cash rate set by the RBA Board and the actual cash rate observed in the market. The actual cash rate is the weighted average cash rate, weighted by value, reported to the RBA each day by Exchange Settlement (ES) account holders and published by the RBA at the end of each day.

The graph provides data from January 1993 to the most recent Board meeting. It shows that the variation of the actual cash rate around the target cash rate has diminished over the period to the point where the actual cash rate is now almost always equal to the target.

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Graph 2: Exchange Settlement Balances

This graph shows the aggregate value of balances held within Exchange Settlement (ES) accounts at the end of each business day since January 2000. The data is in Australian dollars. The graph shows that ES balances are generally quite stable around $1 billion, although in periods of financial market turmoil (such as occurred between 2007 and 2009), ES balances can rise significantly as the Reserve Bank seeks to maintain the cash rate at the target set by the Board.

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