Central Banks

                                There are Eight Major Central banks which are followed by Forex traders to make their decisions with the help of Fundamental analysis. These Banks make the important decisions on Interest rates in the Country. The main aim of Central Bank is to achieve currency stability and maintain economic growth of the Country.

• US Federal Reserve Bank (FED)                                                                                                        

1. FED can be sonsidered as the Bank with highest Influence on currency market. Almost 85% of currency transactions involve US $.   
2. FOMC (Federal open Market Committee) is decision making body on interest rates and consist of seven Governors and five District Presidents. 
3.  Body meets eight times in a year.

• European Central Bank (ECB)

1. Established in June,1998 , creation of Euro.
2. Governing Council decides on the monetary policy.   
3. Body meets twice a week but policy is changed only in eleven meetings.
4. Export oriented economy, so excess currency appreciation is avoided.

• Bank of England (BoE)

1. The monetary policy decisions are taken by a Committee of nine members, Governor, two deputy Governors, two Directors and four experts.
2. Meets once every month to decide policy changes.
3. Inflation rate is targeted at 2%. Accordingly changes are made to currency interest rates.                   

• Bank of Japan (BoE)

1. Monetary policy decision making committee consist of nine members headed by Governor.
2. Committee meets once every month to decide on monetary policy.
3. Export-oriented economy. Central bank always tries hard to prevent appreciation of Yen.
4. Interest rate is set to Zero. Advantage in carry trade. 

•  The Royal Bank of Canada (BoC)        

1. Governor, senior deputy Governor and six deputy Governors decide the monetary policy. 
2. Committee meets eight times a year.
3. Controls the Inflation rate between 1-3%.

• The Swiss National Bank (SNB)

1. Export-oriented economy. Thus the currency is controlled not to be strong.
2. Committee consist of only three people and is quite conservative related to Interest rates.

• The Reserve Bank of Australia (RBA) 

1. Monetary Policy committee consist of Governor and eight other members.
2. Committee meets eleven times a year & regulates the inflation rate between 1-3%.
3. Meeting is generally on first Tuesday of every month excluding January every year.

• Reserve  Bank of NewZealand (RBNZ)

1. It has no Committee and the decision solely lies with the Governor.
2. Decision is taken eight times a year & Inflation rate is controlled at around 1.5%.