How Central Bank Rates Actually Move Your Mortgage

Logosofia no Dia a Dia · May 13, 2026 · 35m

Ever wonder what central banks actually do when they "set" interest rates? This episode breaks down the mechanism: how the Bank of Israel targets the interbank lending rate, how that anchor flows through to mortgages and business loans, and why a few basis points matter so much. We also explore foreign exchange intervention — the difference between buying dollars directly and using rates to influence currency — and why Israel recently stopped intervening in the shekel market. Plus: how the ECB's multi-country structure differs from single-economy central banks, and why the Fed's decisions…