From Longman Business Dictionarymonetary policyˈmonetary ˌpolicy [countable, uncountable]ECONOMICS the way a CENTRAL BANK controls the amount of money in the economy at a particular time, for example by changing interest ratesUnless the Bank of Japan relaxes monetary policy (=makes it easier to borrow), the stock market is unlikely to improve.The program is aimed at maintaining the exchange rate against other currencies bytightening monetary policies (=making them more strict). → policy
