Back to Glossary
General TradingC
Central Bank
A central bank is a national institution responsible for managing a country's monetary policy, controlling money supply, setting interest rates, and overseeing the banking system. Examples include the US Federal Reserve, European Central Bank, and Bank of England. Central bank decisions on interest rates and quantitative easing are among the most impactful market-moving events, closely followed by traders across all asset classes.
Example
“Markets rallied after the central bank signaled it would pause rate hikes, easing concerns about further monetary tightening.”