noun

central bank

the institution managing a nation's currency and rates

In more detail

1. (noun) a national bank that controls a country's money supply, interest rates, and banking system, and often manages the government's finances

Examples

1. The Federal Reserve is the central bank of the United States.

How to use central bank

A central bank is a key financial institution in modern economies, typically independent from government but accountable to it. The term is used in formal economic, financial, and policy contexts when discussing monetary policy, financial stability, and interest rate decisions. It differs from regular commercial banks in scope and regulatory authority.

Common phrases

central bank policy
central bank rates
central bank governor
central bank intervention
European Central Bank
set interest rates

Synonyms

monetary authority · reserve bank · national bank · federal bank

A common mistake

Learners sometimes confuse 'central bank' with 'central office of a bank' or think all banks have equal regulatory power; central banks are specifically sovereign monetary authorities.

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