Lesson 5 - Central Banks and Interest Rates

This lesson explains the role of central banks in setting a country's interest rates. It discusses the effects that investment and inflation play in officials' decisions. We will also take one through an example of the Forex market's reaction to central banks' actions and expectations.

• 5.1 Interest Rates Importance to Forex
• 5.2 The Role of Central Banks
• 5.3 Market Reactions to Central Banks - FOMC Example
• 5.4 FOMC Example Continued
• 5.5 - 8 Central Banks You Need to Know