Base money= currency in circulation + deposits that banks have with the RBA in ESA
changes in base money are no longer needed to implement a change in monetary policy
RBA :arrow_up: the overnight cash rate, thus interest on fund deposited in ESA also :arrow_up:
Thus, demand for base money increases, AD shifts right, lenders switch from overnight cash market to ESA (deposit more in their ESA).
Thus, borrowers in the overnight cash market increases the cash rate to secure loans.
Meanwhile, the supply base of money is not altered by a change in the target rate because RBA has ultimate control