What is 'Monetary Policy'
Monetary policy consists of the actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as modifying the interest rate, buying or selling government bonds, and changing the amount of money banks are required to keep in the vault (bank reserves).
Source: https://www.investopedia.com/terms/m/monetarypolicy.asp#ixzz5FYFd4QFD