Glossary

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Official Cash Rate

The Official Cash Rate is an interest rate used by banks and other financial institutions as a benchmark for their own interest rates. Also called the official interest rate, it is determined by the Reserve Bank of Australia based on inflation, economic activity, and policy targets. Changes in the Official Cash Rate affect the rates on credit cards, variable home loans, other financial products.The OCR is reviewed several times a year and may take weeks to reflect in commercial rates. Sudden events such as war and calamity can cause unscheduled OCR adjustments.