How Do Governments Fight Inflation?

Monetary policy primarily involves changing interest rates to control inflation. This microcontent shows the relationship between inflation and base rates. 

If the Hungarian National Bank feels inflation is rising too quickly, it may raise the base rate. When the base rate goes up, interest rates may rise. 

Oppositely, if the Hungarian National Bank feels the rate of inflation is too low, it may cut the base rate. When the base rate goes down, interest rates may fall.