What Is Cash Interest?

Cash interest rate is mainly a macro policy, which is a kind of interest rate policy that banks lend to banks. Generally, the central banks that issue currencies control the macro economy by adjusting the cash rate.

Cash rate

Cash rate also called

Because the amount of money that people save and withdraw is not fixed, banks sometimes have more and sometimes less cash arrangements. In order to adjust the bank's cash stock and improve the efficiency of capital use, banks borrow from each other. That is, banks with excess cash flow to banks without cash, but they also come at a price. The paying bank will charge interest. Because it is a temporary cash transfer, the time is short. Interbank lending can be up to 7 days and the shortest half a day, so it refers to overnight.