Who sets interest rates for banks?

Interest rates for banks are primarily set by central banks, such as the Federal Reserve in the United States, the European Central Bank in the Eurozone, and others around the world. These central banks influence interest rates through monetary policy tools, including setting the benchmark interest rate, conducting open market operations, and adjusting reserve requirements. Additionally, market conditions, inflation expectations, and economic indicators also play a role in shaping the interest rates that banks offer to consumers and businesses.