New Delhi, Sept. 15 -- The Reserve Bank of India (RBI) may raise interest rates in October, though any rate-hike cycle is expected to remain shallow, with the central bank likely to maintain its broader focus on liquidity and foreign exchange management, according to a report by Emkay Global Financial Services.

As per the report, the recent shifts in the domestic and global macroeconomic environment have increased the likelihood of the Reserve Bank of India (RBI) raising interest rates at its October Monetary Policy Committee (MPC) meeting.

"We expect any hiking cycle to be a shallow one, with the broader focus remaining on liquidity and FX management," it said.

The report pointed to three key developments behind the changing rate outl...