Central Bank Policy Rate by Country

Why compare Central Bank Policy Rate across countries?

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 the country list

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.