Monetary tools to control inflationary pressure in an economy are as follows:
Income in Repo rate: The Central Bank may raise the repo rate to address the issue of inflation. The commercial banks may be forced to raise their lending rates in response to an increase in the repo rate, which could result in higher borrowing costs for the general people.
As a result, aggregate demand may decline, which would aid in reducing the economy's inflationary pressures.
Increase in Reverse Repo rate: The Central Bank may raise the reverse repo rate to address the inflationary scenario. It might entice commercial banks to deposit their excess cash with the Central Bank. As a result, the commercial bank's ability to create may be diminished. As a result, aggregate demand may decline, which would aid in reducing the economy's inflationary pressures.