The monetary policy of a country is generally regulated by its central bank.

Quick Scoop

  • In the United States, monetary policy is set and regulated by the Federal Reserve System (the Fed) , mainly through the Federal Open Market Committee (FOMC).
  • In India (a common exam context for this type of question), monetary policy is regulated by the Reserve Bank of India (RBI) , which is the country’s central bank.
  • More broadly, in almost every modern economy, it is the central bank , not the government, parliament, or commercial banks, that regulates monetary policy using tools like policy interest rates and open market operations.

So, if your question is a multiple-choice one such as “which of these regulates the monetary policy?”, the correct option is the central bank (e.g., Federal Reserve, RBI, European Central Bank). Information gathered from public forums or data available on the internet and portrayed here.