The central bank had cut the repo rate by a total of 100 basis points in the first half of 2025, but paused at its previous meeting in August. The six-member rate-setting panel voted unanimously to keep the key repo rate at 5.50% and decided to continue with a "neutral" policy stance. Past rate cuts and recently announced tax cuts on consumer items will have a positive impact on demand while punitive trade tariffs imposed by the U.S. on India will hurt exports. The central bank raised its GDP growth forecast for the current year to 6.8% compared with its previous estimate of 6.5%. The MPC said the outlook on inflation has turned more benign due to lower food prices and tax rate cuts, Malhotra said in his statement.