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What will happen when the national cash rate is negative?

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Question added by Farah Husni , Supply Chain Manager , Supply Chain Corp
Date Posted: 2015/02/25
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by Deleted user

The cash rate is linked to the interest rate borrowers pay when they take loans from banks because the latter always charges interest which is higher than the existing cash rate. Hence, lower cash rates could induce lenders into lowering the interest rates they charge from individual borrowers too, thereby making credit more affordable.

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