MUMBAI, June 5 -- The Reserve Bank of India's rate-setting panel on Friday unanimously kept the repo rate unchanged at 5.25% and retained its "neutral" stance. The central bank also trimmed its real GDP growth forecast for 2026-27 to 6.6% from 6.9% earlier this year, while raising its retail inflation outlook to 5.1% from 4.6% earlier.

The decision to stay pat on rates was widely in line with market expectations. A Mint poll of 10 economists and market participants had pointed to rising inflation risks and a weakening growth outlook, with all respondents expecting the central bank's Monetary Policy Committee (MPC) to keep rates on hold while signalling a more cautious policy approach.

Consequently, the MPC also kept the standing deposit...