- To attain and maintain full employment level in the economy. This is achieved through expansionary monetary policy through encouraging lending to productive sectors like the agricultural sector thereby increasing employment opportunities.
- To maintain stable balance of payments position. This is achieved through use of selective credit control that promotes domestic manufacturing sectors with a view of increasing exports which helps in increasing the country’s foreign exchange earnings while discouraging importation hence improving the country’s B.O.P position.
- To ensure stability in exchange rates by regulating inflow and outflow of foreign exchange currencies.
- To maintain domestic price stability. This is achieved through use of restrictive monetary policy that helps in controlling aggregate demand eventually stabilizing prices.
- To attain balanced growth and development of the economy.
- To attain equitable distribution of income.
- To stimulate economic growth and development.
- To create a broad and continuous market for government securities (bonds and treasury bills).
- To encourage growth of the financial sector. This is mainly through promotion of expansionary monetary policies e.g. reduction in cash ratio, bank rate, reserve ratio in order to encourage commercial banks to lend to willing borrowers hence being able to grow through realizing higher profits from credit creation.
To foster savings of the community through the manipulation of interest rates.