Central bank
Updated 2026-09-20
Definition
The institution governing a currency's monetary policy, chiefly by setting rates: the Fed, ECB, Bank of England, Bank of Japan, RBA, SNB.
Why it matters
Its decisions and communication are among the main drivers of forex. The market reacts to surprises against expectations.
Practical example
A Fed press conference: an unexpected sentence can move the dollar by tens of pips.
Related entries
Want to compare notes with other traders?
Join the community to share ideas and questions, or the free signal room on Telegram.
Educational content, not financial advice. Trading involves risk.