Monetary policy deals with rules, regulations, instruments and measures for regulating money and its movements, all in order to ensure and maintain price stability and sustainable economic growth of the country. Monetary policy is necessary for every country and the central bank is responsible for its implementation. While in Europe the central bank is the European Central Bank, in the Republic of Croatia it is the Croatian National Bank, which, based on monetary policy guidelines, supplies the entire economy with an adequate amount of money and at the same time takes care to avoid all disturbances, i.e. negative fluctuations. With monetary policy, the central bank regulates total income in order to achieve set goals. To achieve its goals, the central bank uses certain instruments that influence the amount of primary money and the movement of the interest rate. Namely, if the amount of primary money increases and, comparatively, the interest rate decreases, an expansionary monetary policy occurs, and if the situation is reversed, it is a restrictive monetary policy. The main objectives of monetary policy are: price stability, high employment rate, high level of production and high GDP. Monetary policy is very important for every country, including the Republic of Croatia. Namely, the central bank, which implements monetary policy, must comply with legal norms and rules in order to operate and achieve its own goals that are of interest to the entire economy of the country. Although the Croatian National Bank records positive business results and visible progress in the Republic of Croatia, it is still necessary to invest a lot of effort and resources for even better results and better monetary policy.