Monetary policy refers to the actions undertaken by a country's monetaryauthority, central bank or government to achieve certain national economicgoals. It is based on the relationship between interest rates at which money canbe borrowed and total supply of money. Policy rates are the most important rateswithin a country's monetary policy. These can be: deposit rates, lombard rates,rediscount rates, reference rates etc. Changing them influences economic growth,inflation, exchange rates and unemployment.