Meet the world's central banks

The lesson in full

Every currency has a central bank behind it. It sets the main interest rate and guards the value of money. When it speaks, its currency moves.
The big four for traders: the Fed (US dollar), the ECB (euro), the Bank of Japan (yen) and the Bank of England (pound).
Closer to home for many: Bank Indonesia (rupiah), Banxico (Mexican peso), the RBI (Indian rupee), Banco Central do Brasil (real) and the People's Bank of China (yuan).
Most target low, steady inflation. The Fed, ECB and Bank of England aim for 2%, Bank Indonesia for 2.5% (plus or minus 1 point), Banxico and Brazil for 3%, the RBI for 4%.
Each one publishes its dates for rate decisions. The Fed, ECB and Bank of England decide eight times a year; Bank Indonesia meets every month. Traders mark every date.
Common mistake
Myth: you can open a savings account at a central bank. Reality: it's the bank for banks and the government. You bank with ordinary banks, which follow its rates.
Key takeaway
Know your currency's central bank: who it is, what it targets and when it meets.

The ECB sets interest rates for... The euroThe European Central Bank sets rates for the countries that use the euro.
The Fed, the ECB and the Bank of England all aim for inflation of about... 2%All three target 2% a year: low enough to protect savers, but not so low that prices start to fall.
Which central bank sets rates for the Japanese yen? The Bank of JapanEach currency has its own central bank, and for the yen it's the Bank of Japan.
Banxico targets 3% inflation, but prices are rising 6% a year. What is Banxico most likely to do? Keep rates high or raise themHigher rates cool spending, which helps bring inflation back down toward the target.