Entrepreneurship has always paved the way for the growth and development of nations in multiple ways including employment generation, resource mobilization, and boosting innovation (Christy and Suryaneta, Acitya J Teach Educ 4:124–138, 2022). In the context of sustainable regional development, the relationship between entrepreneurship and monetary policy can significantly influence economic dynamics, as high entrepreneurial activity can lead to increased job creation and local development, thereby necessitating responsive monetary policies to foster such growth effectively. Financial market analysts and economists have shown great interest in Monetary Policy Rules (MPRs) in the past decade. The fundamental purpose of monetary policy is to improve the economy by stabilizing commodity prices, exchange rates, and interest rates. It is used to achieve macroeconomic stability and foster sustainable development. However, the effects of monetary policy are not limited to the national level. They can also significantly impact regional economies, potentially amplifying or mitigating regional disparities. Credit spread, fiscal imbalances, and monetary policy autonomy are some of the potent factors that affect the rate of interest, and hence, impact the entrepreneurial ecosystem and regional economic development and growth.