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central bank

central bank

100 3.1
A national bank that controls a country's money and interest rates and holds money for the government and other banks
  • noun
  • /ˈsɛntrəl bæŋk/
translation icon : banco central
  • The central bank regulates the country's monetary policy to ensure economic stability.
  • central bank independence
  • an independent central bank
  • central bank monetary policy

So the focus has been on how central banks generate inflation.

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Examples

  • The credit crunch got much worse in September, going far beyond what central banks and regulators could handle.

    Academic text (2008)
  • Politicians appear to expect the central bank to maintain low interest rates as well.

    Academic text (1993)
  • What problem may the central bank face in doing this?

  • This is an issue for all central banks, not just for China.

  • So people ask that, well, without the central bank, what would happen?

  • Why have faith in a central bank?

  • Several central banks were set up but then removed.

  • Only then could they apply to the central bank for approval for the transaction.

  • The economic impact of most concern to many governments and to central banks, in particular, is inflation.

    Academic text (1990)
  • The primary proponent of a central bank for the early United States was Alexander Hamilton.

How Central

central bank
100 3.1
commercial bank
  • Specialized
12 3.0

Surface Forms

central bank singular
central banks plural

Morphology

central + bank

The meaning 'the country's main bank' is directly and transparently derived from combining 'central' (main/most important) with 'bank' (financial institution). While detailed technical functions (monetary policy, interest rates) are specialized, the basic idea of a national or principal bank is compositional and cross-linguistically common, so a B1 learner who knows both words will grasp the MWE.

Etymology

The term central bank comes from the picture of one main bank at the central point of a country's money system, where the government and other banks go for help with money. That's why it means the country’s main bank that manages the money supply, helps other banks, and sets interest rates.