Mumbai, Aug. 5 -- The Reserve Bank of India's Monetary Policy Committee (MPC) is widely expected to keep the benchmark repo rate unchanged at 5.25 per cent in its policy announcement later on Wednesday, with analysts also anticipating the central bank to retain its 'neutral' policy stance amid easing inflation, resilient economic growth and comfortable external sector indicators.

The expected status quo is expected after key macroeconomic indicators have broadly evolved more favourably than the assumptions underlying the RBI's June monetary policy review.

Retail inflation has remained below the central bank's projections, with average inflation for the first quarter of FY27 coming in at 3.9 per cent against the RBI's forecast of 4.2 per...