New Delhi, July 13 -- The Reserve Bank of India (RBI) is likely to keep policy rates unchanged at least till October 2026, while India's economy is expected to grow at a steady pace of 6.6-6.8 per cent in FY27 despite global uncertainties, according to Bank of Baroda's FY27 Economic Outlook.

The bank said it does not expect any rate action by the RBI till October 2026, although one rate hike may be possible later depending on incoming economic data. It added that while inflation is expected to move higher during FY27, it is likely to remain within the Monetary Policy Committee's tolerance band.

Bank of Baroda projected retail inflation (CPI) at 5.0-5.2 per cent in FY27, compared with 2.1 per cent in FY26. It also expects the repo rate t...