x x x x x y

CRR SLR Repo Rate Reverse Repo Bank Rate Money Supply 3
Jan 4 21.5 6.75 5.75 7.75 11420315
Feb 4 21.5 6.75 5.75 7.75 11560894
Mar 4 21.5 6.75 5.75 7.75 11617615
Apr 4 21.5 6.5 6 7 11886047
May 4 21.25 6.5 6 7 11890102
Jun 4 21.25 6.5 6 7 11924041
2016
Jul 4 21 6.5 6 7 12006481
Aug 4 21 6.5 6 7 12075664
Sep 4 21 6.5 6 7 12489994
Oct 4 20.75 6.25 5.75 6.75 12364909
Nov 4 20.75 6.25 5.75 6.75 12131388
Dec 4 20.75 6.25 5.75 6.75 12005779
Jan 4 20.5 6.25 5.75 6.75 12106737
Feb 4 20.5 6.25 5.75 6.75 12262335
Mar 4 20.5 6.25 5.75 6.75 12791940
Apr 4 20.5 6.25 6 6.5 12683877
May 4 20.5 6.25 6 6.5 12671722
Jun 4 20 6.25 6 6.5 12758460
2017
Jul 4 20 6.25 6 6.5 12808104
Aug 4 20 6 5.75 6.25 12882658
Sep 4 20 6 5.75 6.25 13184330
Oct 4 19.5 6 5.75 6.25 13115316
Nov 4 19.5 6 5.75 6.25 13147309
Dec 4 19.5 6 5.75 6.25 13208681
Jan 4 19.5 6 5.75 6.25 13363234
Feb 4 19.5 6 5.75 6.25 13478992
Mar 4 19.5 6 5.75 6.25 13962587
Apr 4 19.5 6 5.75 6.25 13981647
May 4 19.5 6 5.75 6.25 13984478
Jun 4 19.5 6.25 6 6.5 14003227
2018
Jul 4 19.5 6.25 6 6.5 14072866
Aug 4 19.5 6.5 6.25 6.75 14271408
Sep 4 19.5 6.5 6.25 6.75 14422908
Oct 4 19.5 6.5 6.25 6.75 14426380
Nov 4 19.5 6.5 6.25 6.75 14518775
Dec 4 19.5 6.5 6.25 6.75 14549695
Jan 4 19.25 6.5 6.25 6.75 14758783
Feb 4 19.25 6.25 6 6.5 14939818
Mar 4 19.25 6.25 6 6.5 15432067
Apr 4 19 6 5.75 6.25 15378604
May 4 19 6 5.75 6.25 15421077
Jun 4 19 5.75 5.5 6 15416104
2019
Jul 4 18.75 5.75 5.5 6 15567781
Aug 4 18.75 5.4 5.15 5.65 15677090
Sep 4 18.75 5.4 5.15 5.65 15814167
2019

Oct 4 18.5 5.15 4.9 5.4 15955362

Nov 4 18.5 5.15 4.9 5.4 15945749
Dec 4 18.5 5.15 4.9 5.4 16062978
Jan 4 18.25 5.15 4.9 5.4 16418625
Feb 4 18.25 5.15 4.9 5.4 16459027
Mar 3 18.25 4.4 4 4.65 16799963
Apr 3 18 4.4 3.75 4.65 17034133
May 3 18 4 3.35 4.25 17230908
Jun 3 18 4 3.35 4.25 17319491
2020
Jul 3 18 4 3.35 4.25 17625803
Aug 3 18 4 3.35 4.25 17647997
Sep 3 18 4 3.35 4.25 17739734
Oct 3 18 4 3.35 4.25 17803739
Nov 3 18 4 3.35 4.25 17937939
Dec 3 18 4 3.35 4.25 18055372
Jan 3 18 4 3.35 4.25 18401666
2021
Feb 3 18 4 3.35 4.25 18563764
March 3.5 18 4 3.35 4.25 18773048

0
The Impact of Quantitative Measures of RBI on M
 The Impact of Quantitative Measures of RBI on Money Supply

SUMMARY OUTPUT

Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
Observations

ANOVA

Regression
Residual
Total

Intercept
Crr
Slr
Repo rate
Reverse Repo
Bank Rate

CRR
SLR
Repo Rate
Reverse Repo
Bank Rate
Money Supply (M3)
 Regression Analysis

0.977943152330142
0.956372809189415
0.952545862627082
465738.211230065
63

df SS MS F
5 271036991576146 54207398315229 249.90492906
57 12363988639787.5 216912081399.78
62 283400980215933

Coefficients Standard Error t Stat P-value

45324194.8621596 3148195.71384222 14.396879667574 1.2215578E-20
665068.599903604 604784.770589543 1.0996781536931 0.2760952551
-1757167.22545106 154608.292561997 -11.36528446394 2.8074229E-16
7327739.19289387 3266585.3425738 2.2432413129976 0.0287845139
-4342262.66751799 1564338.61943045 -2.775781799147 0.0074364708
-2970187.30445997 1673891.85129268 -1.774420075088 0.0813341766

Correlation
CRR SLR Repo Rate Reverse Repo
1
0.657373703521101 1
0.892936290253655 0.848420864289436 1
0.927619516232285 0.75280935708695 0.9803317777779 1
0.85535094786834 0.900018403128103 0.987180380412 0.9379621771
-0.755598405757039 -0.956734132491701 -0.898069496011 -0.8396603537
 Significance F
1.95697509149392E-37

Lower 95% Upper 95% Lower 95.0% Upper 95.0%

39020041.6861025 51628348.0382166 39020041.686 51628348.038217
-545992.013507191 1876129.2133144 -545992.01351 1876129.2133144
-2066764.99102641 -1447569.4598757 -2066764.991 -1447569.4598757
786514.874563549 13868963.5112242 786514.87456 13868963.511224
-7474796.71956246 -1209728.61547353 -7474796.7196 -1209728.6154735
-6322097.91926225 381723.310342301 -6322097.9193 381723.3103423

Bank Rate Money Supply (M3)

1
-0.921703465976172 1
Quantitative Measures of RBI

Interpretation

The co-efficient of multiple determinations R-square value is 0.9564; this means about 95.64% of the variation of the response
the five variables CRR (Cash Reserve Ratio), SLR (Statutory Liquidity Ratio), Repo Rate, Reverse Repo Rate and Bank Rate. The r
making predictions since the value of R2 at 0. 9564 which is very close to 1

Money Supply M3= 45324194.86+665068.5999 (CRR) -1757167.225 (SLR) +7327739.193 (Repo Rate) -4342262.668 (Reverse R

Intercept: In any given year, the money supply will be 45324194.86 (Rupees Crore) when all the predictor values are equal to z

Effect of CRR on Money Supply: the expected increase in money supply will be 665068.5999 (Rupees Crore) with every one un
Effect of SLR on Money supply-the expected decrease in money supply will be 1757167.225(Rupees Crore) with every one uni

Effect of Repo Rate on Money Supply- the expected increase in money supply will be 7327739.193 (Rupees Crore) with every o

Effect of Reverse Repo Rate on Money Supply-the expected decrease in money supply will be -4342262.668 (Rupees Crore) wi

Effect of Bank Rate on Money supply-the expected decrease in money supply will be -2970187.304 (Rupees Crore) with every

CPI Index

Interpretation

There is a weak positive correlation between CPI (Consumer Price Index) and Money Supply (M3) indicating that CPI is not infl
c
The Impact of Money Sup
y x
CPI M3
Jan 5.69% 11420315
Feb 5.18% 11560894
Mar 4.83% 11617615
Apr 5.39% 11886047
May 5.76% 11890102
Jun 5.77% 11924041
2016
Jul 6.07% 12006481
Aug 5.05% 12075664 SUMMARY OUTPUT
Sep 4.31% 12489994
Oct 4.20% 12364909 Regression Statistics
Nov 3.63% 12131388 Multiple R
Dec 3.41% 12005779 R Square
Jan 3.17% 12106737 Adjusted R Square
Feb 3.65% 12262335 Standard Error
Mar 3.81% 12791940 Observations
Apr 2.99% 12683877
May 2.18% 12671722 ANOVA
Jun 1.54% 12758460
2017
Jul 2.36% 12808104 Regression
Aug 3.36% 12882658 Residual
Sep 3.28% 13184330 Total
Oct 3.58% 13115316
Nov 4.88% 13147309
Dec 5.21% 13208681 Intercept
Jan 5.07% 13363234 m3
Feb 4.44% 13478992
Mar 4.28% 13962587
Apr 4.58% 13981647
May 4.87% 13984478
Jun 5.00% 14003227
2018
Jul 4.17% 14072866
Aug 3.69% 14271408
Sep 3.77% 14422908 Correlation
Oct 3.31% 14426380
Nov 2.33% 14518775 CPI
Dec 2.19% 14549695 Money Supply (M3)
Jan 2.05% 14758783
Feb 2.57% 14939818
Mar 2.86% 15432067
Apr 2.92% 15378604
May 3.05% 15421077
Jun 3.18% 15416104
2019
Jul 3.15% 15567781
Aug 3.21% 15677090
Sep 3.99% 15814167
Oct 4.62% 15955362
 Nov 5.54% 15945749
Dec 7.35% 16062978
Jan 7.59% 16418625
Feb 6.58% 16459027
Mar 5.91% 16799963
Apr 5.84% 17034133
May 6.30% 17230908
Jun 6.09% 17319491
2020
Jul 6.93% 17625803
Aug 6.69% 17647997
Sep 7.34% 17739734
Oct 7.61% 17803739
Nov 6.93% 17937939
Dec 4.59% 18055372
Jan 4.06% 18401666
2021
Feb 5.03% 18563764
March 5.52% 18773048
 The Impact of Money Supply on Inflation (CPI)

Regression Analysis

Regression Statistics
0.390233876417065
0.152282478303489
0.138385469751087
0.014126722076417
63

df SS MS F Significance F
1 0.002186811824329 0.002186811824329 10.95793 0.0015683373
61 0.012173420874084 0.000199564276624
62 0.014360232698413

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%

0.004760688788839 0.012332925603091 0.38601455502545 0.700829 -0.01990052 0.0294218977
2.777825963E-09 8.3915217989E-10 3.31027676453414 0.001568 1.099837E-09 4.455814E-09

Correlation
CPI Money Supply (M3)
1
0.390233876417065 1
Lower 95.0% Upper 95.0%
-0.01990052 0.0294218977
1.099837E-09 4.455814E-09
 Data
Column A Column B Average - ColumAverage - Column D
(empty)
(empty)
Q1-

Q2-

Q3-

Q4-

Q5-

Q6-
What is the interpretation of the regression analysis conducted on monetary policy instruments and money suppl

Intercept: In any given year, the money supply will be 45324194.86 (Rupees Crore) when all the predictor values are equal to z

Effect of CRR on Money Supply: the expected increase in money supply will be 665068.5999 (Rupees Crore) with every one un
increase in CRR

Effect of SLR on Money supply-the expected decrease in money supply will be 1757167.225(Rupees Crore) with every one uni
increase in SLR

Effect of Repo Rate on Money Supply- the expected increase in money supply will be 7327739.193 (Rupees Crore) with every o
unit increase in Repo Rate.

Effect of Reverse Repo Rate on Money Supply-the expected decrease in money supply will be -4342262.668 (Rupees Crore) wi
every one unit increase in Reverse Repo Rate.

Effect of Bank Rate on Money supply-the expected decrease in money supply will be -2970187.304 (Rupees Crore) with every
unit increase in Bank Rate.

Which monetary policy instrumemt has a strong correlation with money supply and what does it imply?

SLR and Bank Rate has the strongest negative correlation with money supply. It implies that a change in Bank rate and SLR stro
influences money supply and that Bank rate and SLR have a strong inverse relation with money supply (M3) in India.

Which monetary policy instrumemt has a weak correlation with money supply and what does it imply?

CRR has the weakest negative correlation with money supply. It implies that a change in CRR does not strongly influence mone
supply and that CRR does not have a strong inverse relation with money supply (M3) in India.

Does CPI Index and Money Supply in India have a strong correlation?

No, CPI Index and money supply (M3) do not have a strong correlation. It implied that inflation in India is not driven by CPI Ind

Which year amongst 2016-2021 has the highest average CPI Index?

Year 2020 has the highest average CPI Index

Which year amongst 2016-2021 had the highest average Money supply?

Year 2021 has the highest average Money Supply (M3) in India