A central bank changes its policy rate, and the effects can appear almost everywhere. Bond yields move within minutes, currencies react, stock valuations shift, banks reconsider lending conditions, and eventually businesses and households change how much they borrow, invest, or…

A central bank changes its policy rate by only 25 or 50 basis points, and suddenly stock prices move, bond yields shift, currencies jump, and real estate investors start recalculating returns. That reaction can seem extreme until you understand how…