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Central Bank

Fundamental Analysisbeginner
Updated 1/15/2024

Definition

Central banks are national institutions responsible for monetary policy, including setting interest rates, controlling money supply, and maintaining financial stability. Major central banks include the Fed, ECB, BOJ, and BOE.

Example

When the Federal Reserve raises interest rates, it typically strengthens the US Dollar as higher rates attract foreign investment.

Tags

#fundamentals#central-banks#policy

Related Terms

Interest Rate

Fundamental

Interest rates are the cost of borrowing money, set by central banks. They significantly impact curr...

ECB (European Central Bank)

Fundamental

The ECB is the central bank for the Eurozone, responsible for monetary policy affecting the Euro. EC...

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