The bank that sets a country's rates and money supply
A central bank issues the country's money and adjusts interest rates and how much money circulates. Japan has the Bank of Japan, Korea the Bank of Korea, the United States the Federal Reserve, Europe the ECB. Its main job is keeping prices stable, and many of them aim for inflation of about 2%. It raises rates when the economy runs hot and cuts when it cools, which moves both stocks and currencies.
A central bank with a 2% inflation target sets policy by how close prices are to it.
For learning, not investment advice. Decisions are your own.
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