How often do central banks meet to decide rates?

Most major central banks (Fed, ECB, BOE) meet 8 times per year, roughly every 6 weeks. The RBA meets 11 times, and the SNB only 4 times. You can find these dates on any economic calendar.

Are rate cuts always bad for a currency?

Generally, yes—rate cuts reduce the yield advantage. However, if cuts are less aggressive than expected, the currency might actually rally. Also, in crisis conditions, rate cuts can boost confidence and stocks, which might help risk-linked currencies (AUD, NZD).

When markets expect an event (like a rate hike), traders position for it in advance. By the time it happens, the price already reflects it. If the Fed is expected to hike 25bp and they do exactly that, there's no surprise—hence minimal market reaction.

How can I see market expectations for rate changes?

Tools like CME FedWatch (for the Fed) show probability distributions of future rate decisions based on futures pricing. Many news sites also publish rate expectation summaries.

Should I trade during rate announcements?

Rate decisions create extreme volatility with wide spreads and slippage. Most traders either close positions before or wait for the initial volatility to settle (15-30 minutes) before entering based on the new information. See our risk management guide for more.

Fundamental Analysis

Interest Rates and Forex: How Central Banks Move Currencies

Understand how interest rate decisions impact currency values. Learn to trade rate announcements and policy changes.

Written ByJames WilsonRisk Management Specialist

Fact Checked ByEdith BalazsFact-Checker & Research Lead

Last UpdatedNov 16, 2026

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James Wilson

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James is a certified Financial Risk Manager (FRM) and former compliance officer for an FCA-regulated broker. He focuses on evaluating broker safety, regulatory status, and helping traders understand leverage and capital preservation strategies.

Risk Management Specialist — Everything you find on BrokerAnalysis is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback.

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Interest Rates and Forex: How Central Banks Move Currencies

James Wilson

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