This is the rate set by the Reserve Bank of Australia, based on which other financial institutions (commercial banks) set their interest rates on loans and deposits. The interest rates are one of the most important mechanisms through which the country's economy is regulated. In particular, issues of economic growth and inflationary pressure are regulated through the rates.
The market reaction to the interest rates is one of the strongest. In fact, the decision of central bankers on how the rate will change is a key moment in the determination of markets in which direction to go. The entire economic policy depends on what interest rate is set at the moment. The interest rate is measured in percentage or basis points. The formal change of the rate is possible at 0.01% (1 basis point), but as a rule the real change occurs at 0.25% (25 basis points).