Monetary policy is one of the most important policies in every state because of, with it's goals and instruments, has influence on prices, investitions, amount of money in circulation and interest rates. Every central bank, while coducting the monetary policy, sets certain goals, and mostly of them have price stability as the main goal. The Croatian national bank carrying out monetary policy to the assessment and application of instruments and measures which are necessary for its goals and tasks exercising. This bank carrying out expansive monetary policy and policy maintaining stability of the kuna regarding the euro for years, what is the main precondition for maintaining financial stability. The central bank with it's exchange rate has a major impact on a real economic activity and it's influence is weaker through the cash flows and interest rates. From this paper it can be concluded that monetary policy in the Republic of Croatia is not settled on the best way, but surely it is more place for improvement.