RBI keeps rates unchanged; to maintain accommodative stance

Mumbai: RBI Governor Raghuram Rajan Tuesday left the key policy rate unchanged but indicated at accommodative stance saying with "inflation moving closer to the target" there would be more room for rate cut to support growth.

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 per cent and the reverse repo rate at 7.75 per cent.

"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 per cent by the end of 2016-17," Rajan said announcing the 6th and final monetary policy for the current fiscal.