A central bank is the public institution that manages a country's or region's currency and sets its monetary policy, including the policy interest rate. Examples are the Federal Reserve in the United States, the European Central Bank for the euro area and Banco de México. Its decisions and statements can coincide with higher volatility and wider spreads.
Also called: monetary authority, reserve bank, national bank
Hypothetical example
Hypothetically, a calendar lists a central bank's rate decision followed by a press conference by its governor; the two appear as separate events.
