Glossary: Central Bank
DEFINITION:
Usually a federal government-related institution that is entrusted with control of the commercial banking system and with the issuance of the currency. Responsible for setting the level of credit and money supply in an economy and serving as the bank of last resort for other banks. Also has a major impact on interest rates, inflation, and economic output. Under Article 97 of the constitution, the Central Bank of Chile is an autonomous body.