Mumbai, Aug. 5 -- Economists broadly welcomed the Reserve Bank of India's (RBI) decision to keep the policy repo rate unchanged at 5.25 per cent and retain a neutral stance, saying easing inflation risks, improving capital inflows and adequate liquidity provide room for the central bank to remain on pause while closely monitoring global uncertainties.

The Monetary Policy Committee (MPC) also raised its FY27 growth forecast to 6.7 per cent and lowered its inflation projection to 5.0 per cent, citing resilient domestic demand and easing supply-side pressures.

Reacting to the policy, CRISIL Chief Economist D K Joshi said the outcome was largely in line with market expectations.

"We were expecting a neutral stance. We were expecting the po...