New Delhi, Aug. 6 -- The status quo maintained by the monetary policy committee (MPC) of the Reserve Bank of India (RBI) on interest rates sprung no surprise, given the caution that a hazy economic horizon tends to induce. At 5.25%, RBI's repo rate stays unchanged, as does its neutral stance.

But the MPC's brighter growth and inflation outlook makes for two cheers. Real GDP expansion is seen at 6.7% in 2027-28, up from 6.6%. Thank the economy's resilience. Retail inflation is now projected at 5% in 2027-28, down from 5.1%. This exceeds RBI's 4% target, but didn't nudge the MPC to hike rates.

It doesn't expect pressures from volatile food and fuel prices to generate overall price instability, which may have led it to keep rates steady fo...