The RBA cash rate is the rate it lends to banks..so the peoples...

  1. 6,204 Posts.
    lightbulb Created with Sketch. 22
    The RBA cash rate is the rate it lends to banks..so the peoples bank (RBA) makes money from the banks and pays a dividend to the government every year...ergo the government makes money at home owners and investors expense...
    So would it not be better for the peoples bank to lend money to the banks at 0% ???
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.