Chart 5: Greater divergence in interest rate post-crisis  We also compare another measure of gap: interest rate gap as the difference between quarterly average overnight call rate and interest rate obtained from the Taylor rule, and inflation gap as the difference between quarterly average inflation rate and target inflation (Chart 6).
It showed statistically significant inverse correlation which implies that higher the deviation of policy rate from that implied by the simple Taylor rule, higher is the deviation of inflation from its desired level.9  9  8  Correlation coefficient of –0.78 which was statistically significant at 1 per cent.