Question

how do Bank regulate inflation​

Answer 1

The first is to increase interest rates through the central bank, in the case of the U.S., that's the Federal Reserve. ... When banks increase their rates, fewer people want to borrow money because it costs more to do so while that money accrues at a higher interest. So, spending drops, prices drop and inflation slows

Answer 2

The first is to increase interest rates. Banks borrow money from the government at the Federal Reserve rate. To make money, those banks must lend money at higher rates. If the Federal Reserve increases its interest rate, banks have to increase their rates, too.