MUMBAI, Oct. 1 -- The Reserve Bank of India led by governor Sanjay Malhotra kept the benchmark repo rate unchanged at 5.50% for the second straight time on Wednesday. The central bank also maintained its 'neutral' stance.

Despite expectations for a cut, the central bank's Monetary Policy Committee (MPC) opted to hold rates steady during its October review. Of the 37 economists polled by Bloomberg, 25 had forecast a rate cut of 25 basis points (bps) whereas only 11 had expected rates to remain unchanged.

The possibility of a rate cut was fuelled by retail inflation undershooting the central bank's estimates and ongoing economic uncertainty, including that arising from then-US President Donald Trump's tariff policy.

The last time the MPC...