Central Bank

A central bank is the institution responsible for a country's monetary policy — setting interest rates, managing money supply, and often overseeing currency stability — examples include the US Federal Reserve, the European Central Bank, and the Bank of England. Their decisions and communications are the single most important fundamental driver of currency value over the medium term. Traders follow central bank meeting schedules, press conferences, and published minutes closely, since even subtle language shifts can move markets well before any actual rate change.