central bank

A country's main bank. It sets the basic cost of borrowing money to keep prices steady and the economy healthy.

The fuller meaning

The institution that runs monetary policy, setting short-term interest rates to manage inflation and growth, such as the Federal Reserve, the Reserve Bank of India and the Bank of Japan. Higher rates tend to support a currency and weigh on bonds and growth stocks; markets move most on surprises and hints.

central bank.

central bank

The fuller meaning

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