He also said that if the Budget makes enough structural reforms to boost growth, the central bank could chip in with cheaper money to boost growth.

The repo or short term lending rate remains unchanged at 6.75 percent and the reverse repo rate at 7.75 percent.

"The Reserve Bank continues to be accommodative even as it leaves the policy rate unchanged in this review, while awaiting further data on the development of inflation."

Structural reforms in the forthcoming Union Budget that boost growth while controlling spending will create more space for monetary policy to support growth, while also ensuring that inflation remains on the projected path of 5 percent by the end of 2016-17," Rajan said announcing the 6th and final monetary policy for the current fiscal.

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