The sentence and definition are from Oxford Dictionary for "lead".
If one bank raises interest rates, all the others will follow their lead .
[sing.] an example or action for people to copy
Mary is the leader (doing things before others do them), so she (by setting an example) as leader gives a 'lead' that others then follow. --> #2 If Mary wants to go to the US, I will follow her lead. A lead can also be a clue or piece of information that can be followed, eg a lead followed by a detective or news reporter.
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I wonder why it is not "follow its
If one bank raises interest rates, all the others will follow their lead .
MinnalousheI wonder why it is not "follow its lead" but "follow their lead", as one bank , which is the leader, is singular, and the pronoun should be "its" instead of "theirs".It is common, at least in BrE, to treat companies, organisations etc. as plural. There is actually another example on the same page: "Manchester lost their early two-goal lead."