I came across this sentence on Cambridge Dictionary
The central office sets the parameters that guide policy at the local level.
The example comes with a translation in a different language, but I got confused by it.
The translation implies that it is the central office that guides policy at the local level instead of the parameters.
I thought "that guide policy at the local level" modifies parameters instead of central office, so it should be the Parameters that do the guiding, not central office .
So, Is the translation wrong or my understanding of the sentence is incorrect?