[6]  Graph 3  Money Market Rates %  % BBSW  0.75  0.75  0.50  0.50  0.25  0.25  Cash Rate Expected Cash Rate  0.00  M  J  S  D  2020  M  J  S  D  0.00  2021  Sources: Bloomberg; RBA  The final monetary policy driver of borrowing rates in the economy is the 3-year bond yield target.
The Bank has chosen to focus on the 3-year bond yield target for a couple of reasons. It influences many borrowing rates across the economy, given that borrowing rates in Australia are variable or fixed for short horizons, compared with other countries such as the US, where the 10-year government bond rate is a more important pricing benchmark.