What is the primary goal of contractionary monetary policy?

The primary goal of contractionary monetary policy is to reduce inflation, which is when prices for goods and services rise too quickly. When inflation is high, it can make it harder for people to afford basic items, so the government tries to slow down the economy. To do this, the central bank may raise interest rates, making loans more expensive and encouraging people to save rather than spend. For example, if a central bank raises interest rates, a family might decide not to take out a loan for a new car, which can help lower demand and, in turn, slow down price increases. Ultimately, by using contractionary monetary policy, the goal is to keep the economy stable and prices manageable for everyone.