The monetary policy was made by central banks to achieve many macroeconomic goals such as controlling inflation, consumption, etc. It manages the supply and demand for money by using the interest rate as a tool. It is used by the central bank of a country to achieve macroeconomic goals. Monetary authorities work on them to control the payable interest rate. Central banks used the key concepts of monetary policy to expand the economy such as they reduce the discount rate, decrease the reserve ratio, and purchase government security. Main objective of Monetary Policy The main objective of this policy is to attain the stability of prices. The goal is achieved when the domestic economy has the lowest possible and sustainable prices. GDP
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