The cash rate influences other interest rates in the economy, affecting the behaviour of borrowers and lenders, economic activity and ultimately the rate of inflation. (rba.gov.au)
Both today's cash rate and its expected value over the next 6 to 12 months form the anchor for the spectrum of interest rates in the economy. (rba.gov.au)
Central banks will, therefore, need to develop alternative tools for influencing interest rates in the economy. (bis.org)