The foreign brokerage said even though oil has "opened some space", the exact quantum of the benefit will only be determined once the markets stabilise, and also by the stance of the Central government, which has till now let pass only half of the benefit by raising duties on oil products.

The RBI will also be closely watching the Budget fine print, it said, adding its effect on inflation and financial stability will be closely watched.

Additionally, there are other factors governing inflation which will play out in the next few weeks, like the arrival of the Rabi crop, it said.

The RBI cut rates by a total of 1.25 percent in 2015, including one within a week of the last Budget, after switching the stance of the policy to be accommodative and address sagging growth.

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