BANKING GENERAL KNOWLEDGE
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T+0
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Detailed explanation-1: -The lowest fed funds rate was zero in 2008 and again in March 2020 in response to the coronavirus pandemic. The FOMC announced in November 2022 that it would continue to raise interest rates in response to rising inflation.
Detailed explanation-2: -Key Takeaways. A zero interest rate policy (ZIRP) is when a central bank sets its target short-term interest rate at or close to 0%. The goal is to spur economic activity by encourage low-cost borrowing and greater access to cheap credit by firms and individuals.
Detailed explanation-3: -Cash Rate – The interest rate which banks pay to borrow funds from other banks in the money market on an overnight basis.
Detailed explanation-4: -The current official cash rate as determined by the Reserve Bank of Australia (RBA) is 3.35%. The next RBA Board meeting and Official Cash Rate announcement will be on the 7th March 2023.