Cash Rate
Share market investors also have to keep a close eye on Reserve Bank announcements. Any rate change by the Reserve will flow through to the money markets immediately via a move in the cash rate but stocks will also rise or fall as strategists assess whether shares are more attractive investments than cash and bonds….
Monetary policy
Since monetary policy affects the rates levied on our borrowings and savings, and pretty well underpins every financial transaction we make on a daily basis, it’s worth understanding the basics. It works simply enough: just as you hold an account at a bank, every bank in turn holds an account at the RBA, technically termed…
