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Presentation 3

notes of economics indian eco

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18 views6 pages

Presentation 3

notes of economics indian eco

Uploaded by

Tarab
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Influence of Quantitative Tools

of Monetary Policy on
Macroeconomic Factors
2023
Quantitative Figures Macroeconomic Figures
Tools Factors

Bank Rates 6.75%


Inflation 5.46%
Repo Rates 6.50%

Reverse Repo 3.35% Unemployment 8.7%


Rates

Cash Reserve Ratio 4.50%


(CRR)
GDP 7.6%
Statutory Liquidity 18.00%
Ratio (SLR)
2022
Quantitative Figures Macroeconomic Figures
Tools Factors

Bank Rates 6.50%


Inflation 4.6%
Repo Rates 6.25%

Reverse Repo 3.35% Unemployment 6.7%


Rates

Cash Reserve Ratio 4.00%


(CRR)
GDP 7%
Statutory Liquidity 18.00%
Ratio (SLR)
Change

• There is an increase in bank rates, repo rates and CRR.


• Reverse repo rates and SLR remain constant.
• There is also an increase in inflation rate, unemployment rate and
GDP rates.
Theory

• Increase in bank rates, reverse repo rates, SLR and CRR causes
decrease in money supply and therefore decrease in inflation.
• Increase in repo rates causes increase in money supply and
therefore increase in inflation and GDP and cause a drop in
unemployment.
Difference Between Theory and Reality

• In theory, increase in bank rate, repo rate and CRR should cause
decrease in inflation.
• However, through the given figures, it is seen that there is an
increase in inflation despite the increase in bank rate, repo rate and
CRR.

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