Individual banks and lenders determine the interest rate that they will offer on a particular category of goods based on a number of factors. These factors include their exposure to or interest in extending financing in that area (say motor vehicles), their confidence in the sector, the economy in general, global economic and financial drivers and the costs that they must pay to access the funds they need to extend loans. The price that lenders pay for their finance is determined by what is known as the official cash rate and this is set by the Reserve Bank of Australia. When the RBA cuts the rate at which banks can borrow money, interest rates on many goods and loans is usually reduced by not always by the full amount of the rate cut. These rates determine the rates that individual lenders offer on car loans.