Central Bank Policy Rate by Country

What is Central Bank Policy Rate?

The policy rate is the headline interest rate set by a country's central bank — the Fed funds target in the US, the ECB deposit facility rate in the eurozone, the Bank Rate in the UK, the cash rate in Australia, the OCR in New Zealand, and so on. It is the rate against which all other domestic interest rates are anchored, and the single most important policy lever a central bank uses to manage inflation, growth, and the exchange rate.

Why it matters for FX

Policy rates drive currency valuations through the interest-rate differential channel: when one central bank hikes faster than another, capital tends to flow toward the higher-yielding currency and that currency typically appreciates. Most of the largest moves in major FX pairs over a multi-month horizon — EUR/USD, USD/JPY, AUD/USD, GBP/USD — can be traced back to changes in expected policy rate paths rather than the level itself. Markets price the trajectory; surprises versus expectations move pairs the most.

How to read this page

The table shows the level set at the most recent policy meeting for each currency, the level set at the prior meeting, and the size of the change in basis points. Most major central banks meet roughly eight times per year; the SNB meets quarterly. Compare currencies in pairs — for example, the gap between the US Fed funds rate and the BoJ policy rate is the dominant driver of USD/JPY over the cycle.

What to watch for

• Differentials widening (one central bank diverging from the others)
• Dovish/hawkish surprises versus the rate path priced into OIS
• Forward guidance language shifts even when the rate is unchanged
• Out-of-meeting cuts or hikes (rare, large FX impact)
• Real-rate moves: nominal rate minus inflation, not the headline