I will then describe how this interest rate, known as the cash rate, affects all the other interest rates in the economy, including mortgage rates, business borrowing rates and deposit rates. So that affects you one way or another. I will also talk about the Reserve Bank’s transactions in the foreign exchange market and finish with some thoughts about the exchange rate more generally.
Domestic market operations As you all know, on the first Tuesday of each month (except January), the Board of the Reserve Bank meets to determine the appropriate stance of monetary policy in Australia. At 2.30 pm, just after the conclusion of the meeting, the Governor issues a press release announcing the Board’s decision, along with an explanation for the decision taken.