Banks are Influencing The Market

Banks are influencing the market 

The U.S. Federal Reserve (Fed, Federal Reserve System, FED) – an independent financial body created to perform the functions of the central bank and the implementation of centralized control over the commercial banking system of the United States. 
Founded December 23, 1913 in accordance with U.S. law passed by Congress on the Fed. Governing body of the Federal Reserve Board of Governors is composed of 7 members appointed by the president with Senate approval of Congress. Board of Governors headed by the chairman and his deputy. 

The Fed is made up of 12 federal reserve banks, the most important of which is the Federal Reserve Bank of New York, responsible for international financial transactions.The composition of the Federal Reserve also includes 24 branches of the Federal Reserve banks and about 5,6 thousand commercial banks, credit unions, as well as the Federal Open Market Committee, which defines and directs the process of buying and selling securities of the U.S. federal government. Fed Headquarters located in Washington. 

ECB (European Central Bank) – European Central Bank and euro zone. Established: June 1, 1998. Headquartered in the German city of Frankfurt am Main. Its staff includes representatives from all EU Member States. The Bank is fully independent from the rest of the EU. Guided by the Board of Governors, which consists of the Executive Board (the Board) and management of the national central banks. In the Executive Council include the President of the ECB, the Vice-President and four members of the Board.The main objective of the ECB – price stability in the European Monetary Union. Price stability is defined as limiting the growth of Harmonised Index of Consumer Prices (Harmonized Index of Consumer Prices – HICP) for no more than 2% per year. Board of the ECB meets on Thursday in two weeks to announce interest rate. Once a month, the ECB holds a press conference to comment on monetary policy and the economy of Europe. 

European Monetary Union – 12 countries that use the single European currency (Euro): Germany, France, Italy, Spain, the Netherlands, Belgium, Austria, Finland, Portugal, Ireland, Luxembourg and Greece. 

Bank of England is the central bank of the United Kingdom. 

Once known as the ‘Old Lady “of Threadneedle Street, the Bank was founded in 1694, nationalized in 1946 and gained operational independence in 1997. Located in the heart of the British financial system, the Bank is committed to promoting and maintaining a stable monetary and financial system of the UK, which is its major contribution to a healthy economy. 

Under the Act, the Bank of England from June 1997, Bank of England independent in matters relating to monetary policy, its goals – to maintain price stability and employment growth. Indicator of price stability (defined by the Government) is defined as the limit annual growth in retail price index (Retail Prices Index) is not higher than 2.5%. Decision to change the key interest rates in the UK takes the Monetary Policy Committee Bank of England (Monetary Policy Committee) for their monthly meeting. Decisions on the value of a key interest rate (REPO rate) was adopted at a meeting of the Monetary Policy Committee Bank of England, which takes place over two days. Usually it is Wednesday and Thursday of each month following the first Monday of the month. However, there are exceptions when the meeting takes place Tuesday and Wednesday. The result of the meeting the Monetary Policy Committee is announced at 12:00 (GMT) on the second day of the meeting. Minutes of the meeting the Monetary Policy Committee (Minutes of meetings) published in the second week (Wednesday) after each regular meeting. 

National Bank of Switzerland (Swiss National Bank, SNB) has maximum independence in managing monetary policy. Unlike most central banks, SNB does not use a refinancing to regulate the national currency. 

Bank of Japan and the Ministry of Finance. 

Ministry of Finance – the main critical political and monetary institution in Japan. His influence on the currency is more significant than the ministries of finance, U.S., UK or Germany, despite the gradual measures to decentralize decision-making. Officials of the Ministry of Finance often make statements about the economy, which have a fairly strong impact on the USD / JRY. 

Bank of Japan – the most aggressive of the Central Bank in the global market, is known for frequent interventions, the latter of which focused on undervalued yen. In 1998, Japan enacted new laws giving the Bank of Japan (BoJ) independence from the government (Finance Ministry). And although the overall control over monetary policy has shifted to the BoJ, for monetary policy continues to meet the Ministry of Finance. Decisions to change interest rates in Japan Takes Control Board (Policy Board) of the Bank of Japan at its regular meetings on monetary policy (Monetary Policy Meetings). Bank of Japan Monthly Report includes analysis of the economy and the development of inflation in Japan. When making decisions about changing the basic interest rate, the members of the Governing Board of the Bank of Japan shall take into account the contents of this report.