Interest Rate Decision

Definition ∞ An interest rate decision refers to the official determination made by a central bank, such as the Federal Reserve, regarding the target range for its benchmark interest rate. This policy action influences borrowing costs throughout the economy, affecting inflation, economic growth, and asset valuations. Such decisions are pivotal for monetary policy direction.
Context ∞ In the context of cryptocurrency news, an interest rate decision is significant because changes in central bank policy directly impact liquidity in traditional financial markets, which can subsequently influence capital flows into digital assets. Anticipation of such decisions often leads to increased market volatility as investors adjust their risk exposure. The outcome can affect the cost of capital for businesses and individuals, indirectly influencing demand for speculative assets.