Monetary Regulation

Monetary regulation refers to the policies and actions taken by a country's central bank to control the supply of money and interest rates. Its goal is to maintain economic stability, control inflation, promote growth, and ensure financial system health. The central bank manages this through tools like adjusting interest rates, buying or selling government securities, and setting reserve requirements for banks. By doing so, it influences borrowing, spending, and investment, helping to keep the economy running smoothly and preventing excessive inflation or recession.