tight monetary policynoun [ C ]
ukusalso tight money policy ECONOMICS, GOVERNMENT, FINANCEthe activity of limiting the amount of money that people and companies are able to borrow by increasing interest rates:
Due in part to the European Central Bank's tight monetary policy, the biggest European economies have grown only sluggishly in recent years.
After the rate was raised from 15.5% last month, the tight monetary policy came under attack from business.