Finance, Forex and Investments

how does the reserve bank of australia directly influence interest rates of commercial banks?

they call it the cash rate, or the rate which banks charge each other, would I be wrong to assume, that the RBA ensures liquidity in the financial system, by lending cash to commercial banks, that they can use to meet reserve requirements or fund withdrawals, that the RBA in fact creates out of nothing via the printing press?

Public Comments

1. yes since countries went off the gold standard they all do this!!!