As a result, the various market interest rates that intermediaries have to pay to raise funds have, on occasion, moved independently of the cash rate. The Bank has published an analysis of funding costs, which provides a useful framework for thinking about these issues, so I won’t go into them in detail. 1 I will simply make a couple of observations.
All this activity is part of our “be Money $ program” organised by the Reserve Bank and our capital markets colleagues, to help you learn more about money matters. This event is really for you. So I must thank your principals and teachers for bringing you out here today.