90 day bank bill swap rate bbsw
The 90-day bank bill swap rate, an indicator of the direction of cash rates, increased sharply in the past fortnight, from 3.4 per cent to 3.9 per cent, after the RBA surprised international cash markets with an interest rate rise and governor Glenn Stevens said the Australian economy was returning normal growth.
The BBSW is the rate at which banks will lend to each other for, say, 90 days. It’s the Australian version of Libor, the London interbank offer rate that serves as a market benchmark in Britain.