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Central Bank

The institution responsible for a currency and its monetary policy — setting interest rates, managing money supply and acting as lender of last resort.

The institution responsible for a currency and its monetary policy — setting interest rates, managing money supply and acting as lender of last resort.

Why it matters

A handful of these institutions set the price of money worldwide, which makes their meetings the most watched events in finance.

Related terms

Federal Reserve, Interest Rate, Quantitative Easing, CBDC