The Reserve Bank of India (RBI) kept its key repo rate unchanged at 5.50% during its October 2025 meeting, in line with market expectations. The decision comes amid easing inflation, as the central bank assesses the impact of earlier rate cuts and recent tax reductions, against a backdrop of global trade uncertainties. The repo rate remains at its lowest level since August 2022, following a cumulative 100 basis point reduction since the beginning of the year. On the economic outlook, the RBI raised its GDP growth forecast for FY2025/26 to 6.8%, up from a previous estimate of 6.5%, with Q2 at 7.0%, Q3 at 6.4%, and Q4 at 6.2%. Meanwhile, headline inflation projections were revised down to 2.6% from 3.1%, keeping it well within the central bank’s 2%–6% target range. Core inflation was reported at 4.2%. The RBI also held the Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) rates steady at 5.25% and 5.75%, respectively.