Interest rate prediction markets track the likelihood of central bank policy decisions worldwide. These markets aggregate real-time expectations about whether key central banks—including the Federal Reserve, European Central Bank, Bank of Japan, and others—will raise, lower, or hold interest rates at upcoming meetings. Central bank interest rate decisions are among the most consequential financial events. When rates change, they ripple through the economy: mortgage costs rise or fall, business borrowing becomes more or less expensive, savings returns shift, and currency exchange rates adjust. Prediction markets provide transparent price discovery on the probability of each outcome. Within this category, you'll find highly specific markets on individual central banks' rate decisions. For example, markets may ask: Will the Bank of Japan increase rates by 50+ basis points after its April 2026 meeting? Or 25 basis points? Or hold rates steady? Or cut them? Each variation reflects a different policy scenario. What drives prices in interest rate markets? Economic releases are primary factors—inflation data, employment figures, GDP growth reports, and wage trends all signal whether monetary tightening or easing may be needed. Central bank communications matter too: speeches, policy statements, and forward guidance from officials influence market expectations. These markets attract policy analysts, economists, traders, and institutions seeking to understand consensus views on monetary policy direction. By tracking prediction market prices, observers gain insight into how financial markets are pricing in different policy scenarios before official announcements.