The Reserve Bank of India will continue with its accommodative policy to boost economic growth within the space available under the government’s inflation target, the central bank's governor Raghuram Rajan said on Tuesday. Following the bi-monthly monetary policy review for the current fiscal, Rajan said, “We have an economy well and truly in recovery, but with areas of weakness. As we go forward, some of the areas of weakness will hopefully turn around.” The comments came after he left policy rates unchanged at the year’s final monetary policy review.

The central government has projected a growth rate of 7.6-7.8% this fiscal, while the RBI pegged it down at 7.4% with a negative bias. The Central Statistics Office said on Monday that India's economic growth accelerated to 7.4% in the July-September quarter. Rajan, who had maintained a hawkish stance on cutting rates, declined to take any credit for the economic growth, reported PTI. A variety of factors, including a “feel-good” environment created by the government and the surge in public investments, have helped the economy turn around, he said. “We need sustainable growth and we will ensure maximum sustainable growth we can get,” he added.