Monetary policy involves controlling the supply of money in an economy to achieve objectives like growth and stability. It can be expansionary, increasing the money supply to reduce unemployment during recessions, or contractionary, decreasing the money supply to reduce inflation. Central banks use tools like interest rates, cash reserve ratios, and statutory liquidity ratios to implement monetary policy. In India, the Reserve Bank of India uses tools like the bank rate, cash reserve ratio, statutory liquidity ratio, repo rate, and reverse repo rate to conduct monetary policy. At its most recent meeting, the RBI kept some rates unchanged but increased the repo and reverse repo rates to curb inflation risks while supporting moderate growth.