What is a central bank policy rate?

It is the headline interest rate a central bank sets to steer the economy. It anchors the rates banks charge each other overnight, which then feed into mortgages, business loans, and savings rates across the country.

Why do central banks raise or cut rates?

They raise rates to cool an overheating economy and bring down inflation, and cut rates to stimulate borrowing and spending when growth is weak. The policy rate is their main lever for hitting an inflation target, usually around 2 percent.

Why do different banks quote different instruments?

Each central bank names its benchmark differently — the Fed uses a target range for the federal funds rate, the ECB its deposit facility rate, the Bank of England its Bank Rate. They play the same role but are defined by each bank's operating framework.

Are these the rates I pay on a loan?

No. The policy rate is the wholesale rate between banks and the central bank. Retail mortgage and loan rates sit above it by a margin that covers the lender's costs, risk, and profit.

How current is this data?

Rates reflect the most recent policy decisions available at publication. Central banks meet several times a year and can change rates between meetings, so confirm the live rate on the bank's website before relying on it.

What is the Central Bank Interest Rate Reference?

Searchable reference table of monetary policy interest rates for the world's major central banks, with the policy-rate name, the issuing country or bloc, and sortable columns by bank, country, and rate. It runs free in your browser on Gera Tools, with nothing uploaded.

Central Bank Interest Rate Reference

Name: Central Bank Interest Rate Reference
Creator: Gera Tools
License: https://creativecommons.org/licenses/by/4.0/

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Policy rates, bank by bank

This reference lists the headline monetary policy interest rates set by the world’s major central banks, together with the name of each bank’s benchmark instrument and the country or currency bloc it serves. The policy rate is the single most important lever a central bank controls, rippling out into mortgage, loan, and savings rates throughout the economy.

How it works

A central bank sets its policy rate to influence the cost of money. When it wants to slow inflation, it raises the rate, making borrowing more expensive and saving more attractive, which cools spending. When it wants to support growth, it cuts the rate, cheapening credit and encouraging investment. The mechanism flows through the interbank market: the policy rate anchors what banks charge each other overnight, and every other rate in the economy is priced off that anchor plus a margin.

Why different banks name their rates differently

Each central bank’s benchmark reflects its operational framework:

Bank	Instrument name	What it controls
US Federal Reserve	Federal funds rate (target range)	Overnight interbank lending between US banks
European Central Bank	Deposit facility rate	Rate paid on banks’ overnight deposits with the ECB
Bank of England	Bank Rate	Rate paid on reserves held at the Bank of England
Bank of Japan	Policy interest rate	Rate on excess reserves; supplemented by YCC policy
Swiss National Bank	SNB policy rate	Three-month SARON reference

Despite the different names, each plays the same role: anchoring the short end of the yield curve. Long-term rates — ten-year government bond yields, fixed mortgage rates — reflect market expectations about where the policy rate will go over time, not just where it is today.

How the policy rate reaches your finances

The transmission works through several channels:

Interbank lending — banks’ cost of overnight funds rises or falls immediately.
Variable-rate loans — mortgages and business overdrafts linked to base rate reprice quickly, sometimes overnight.
New fixed-rate borrowing — mortgage and corporate bond rates typically reprice within weeks to months as the yield curve shifts.
Exchange rates — higher rates attract foreign capital, strengthening the currency, which lowers import prices and can itself reduce inflation.
Asset prices — higher discount rates compress the present value of future earnings, putting downward pressure on equity valuations.

Tips and notes

Sort by Rate to see the global spread, from near-zero rates in low-inflation economies to double digits where inflation is high.
Read this table alongside the inflation reference: a high policy rate usually signals a bank fighting high inflation, while a low rate signals weak price pressure.
The instrument name matters when comparing precisely — a target range like the fed funds rate has an upper and lower bound; the table shows the upper bound for consistency.
Rates reflect the most recent policy decisions available at publication. Always confirm the current live rate on the central bank’s own website before using the figure in a financial model.