The short-term impacts of a decrease in the cash rate are

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When the cash rate decreases, other short-term interest rates tend to decrease as well. This leads to a decrease in the attractiveness of the domestic currency, causing a fall in the exchange rate. This can lead to an increase in exports and a decrease in imports, boosting economic activity. The decrease in interest rates may also stimulate investment and borrowing, increasing the quantity of money and loanable funds in the short-term.

The Short-Term Impacts of a Decrease in the Cash Rate