How it works
A rate decision changes financial conditions directly, while guidance about future policy can shift expectations even when the current rate is unchanged.
What to check
Read the official statement and minutes rather than relying only on headlines. Markets compare the decision with prior expectations and with policy in other countries.
- Use official central-bank statements
- Compare decision with expectations
- Consider relative policy between countries
Limits and risks
A rate increase does not mechanically guarantee currency appreciation. Positioning, growth expectations, inflation and what was already priced in can dominate the immediate reaction.
Primary sources
BIS 2025 Triennial Central Bank Survey↗FCA: Contracts for difference (CFDs)↗General information only. Investment products can lose value, and terms, fees and regulation can change.