New Delhi, Oct. 2 -- The central bank unwrapped a box of goodies to power credit and business on Wednesday, even as it delivered a better growth outlook and kept policy rates untouched.

The Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.5% for the second time in a row, while nudging up the GDP estimate for the year from 6.5% to 6.8%, citing the economy's resilience in the face of turbulence. The policy panel now sees inflation this year at 2.6% as against 3.1% earlier, thanks to the recent big-bang cuts in goods and services tax (GST).

Reserve Bank of India governor Sanjay Malhotra also hinted at the possibility of another rate cut in December, saying that falling inflation has "created space for rate cut". Even so, t...