PGIM India Mutual Fund head, fixed income, Pal on RBI Policy
This story was originally published at 12:57 IST on 7 October 2026
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MUMBAI - Puneet Pal, head of fixed income, PGIM India Mutual Fund, said the following on the Reserve Bank of India's fourth bi-monthly monetary policy statement for the financial year 2026-27 (Apr-Mar) detailed Wednesday:
The Monetary Policy Committee delivered a hawkish monetary policy as it changed its policy stance to "calibrated tightening" while increasing the policy repo rate to 5.50%. While the 25 basis-point rate hike was fully priced in by the markets, opinions were divided on any change in the monetary policy stance.
The RBI governor's statement emphasising that average inflation of 5.80% over the next three quarters with "core" inflation projected at 4.40% needs policy recalibration reinforces the hawkishness. We continue to expect incremental 75–100 bps of rate hikes over the next nine months and also expect the RBI to keep withdrawing banking liquidity using various tools at its disposal. End
Compiled by Arya S. Biju
Filed by Rajeev Pai
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