Central Banks
The activities of central banks form a vital role in the global economic system in that they determine the supply and price of money. Each central bank has exclusive rights on the supply of money in its currency, and (typically) acts as the lender of last resort in order to ensure the robustness of the local banking system. Central banks also serve a number of other roles in accordance with the objectives set down in there mandate, these may include: monetary policy (setting short term interest rates), foreign exchange intervention, holds and manages the foreign reserves, overviews payment and settlement systems.
Most Important Central Banks for GBP Based Investors
The following links provide a wealth of information concerning the nature, workings and decisions of the respective central bank:
Bank of England of the United Kingdom
Central Bank of the UK (Bank of England) Homepage - Aims to achieve monetary and financial stability. Since its founding more than 300 years ago it has always has to exclusive right to issue Pounds Sterling, however only since 1997 has it been able to independently set interest rates in accordance with an inflation target.
Minutes of Bank Committees, including the Monetary Policy Committee meetings which sets interest rates.
Remark: If you get the chance then I recommend visiting the Bank of England Museum which you will find in Threadneedle Street in the City of London and is open during office hours.
The Federal Reserve of the United States of America
The Federal Reserve Boards Homepage - Has a duel mandate to promoting growth and control inflation, however the Fed does not have an explicit inflation target. US Federal Reserve is the sole institution in the world which sets interest rates for US Dollars and controls of the supply of US Dollars.
Minutes and statements of the US Federal Reserve open market committee
The European Central Bank of the European Union
European Central Bank Homepage - The primary objective of the ECB is to maintain price stability in Euros which it has exclusive right to supply. The ECB where price stability is not effected “shall support the general economic policies” (Treaty article 105.1) which are high level of employment and sustainable and non-inflationary growth.
Monthly Bulletin of the ECBs Governing Council - explains monetary policy decisions and provides analysis of the prevailing economic situation.
Note: The ECB is the only central bank listed which uses details concerning the money supply within its modeling of future inflation expectations. The explicit link between inflation and money supply means that the ECB is in a strong position when defending its own objectives against political interference (namely the over-supply to money to fund government programs).
The Bank of Japan the central bank of Japan
Bank of Japan Homepage - A juridical person established under Law sets the Bank’s objectives “to issue banknotes and to carry out currency and monetary control” and “to ensure smooth settlement of funds among banks and other financial institutions, thereby contributing to the maintenance of an orderly financial system”. Where, “currency and monetary control shall be aimed at, through the pursuit of price stability, contributing to the sound development of the national economy.”
Speeches, Annual Review and Quarterly Bulletin of the Bank of Japan
Other Central Banks