What is a Central Bank?

December 2, 2022

A central bank is a type of government institution that is responsible for conducting monetary policy in a country. Central banks are typically responsible for setting interest rates and managing the supply of money in the economy in order to achieve their objectives, which may include low and stable inflation, full employment, and financial stability. Central banks are typically independent from political interference, and their decisions are made in the best interests of the country’s economy and the public. Central banks also play a role in regulating the payment systems used in their country, and may provide financial services to the government and other financial institutions.

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