Talking Economics With Jason Hughes!
The Young Investors Podcast
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How the Reserve Bank Lenders Your Money?
Illmas explains how the system works. He says it's all done completely to the reserve bank now, illmas. If you run short of money in your account, they are then allowed to borrow. And that haps within those r b a accounts. They earn interest at zero point two, five per cent below the published cash rate. But nobody's ever going to lend any higher than twenty five basis points above the cash rate. So this happens on a daily basis....
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