New Delhi, Oct. 7 -- As the Reserve Bank of India joined a broader global monetary tightening trend with a 25-basis-point rate hike on Wednesday, global investment manager PIMCO said major central banks may ultimately not need to raise interest rates as much as financial markets currently expect.

In its October 2026 Cyclical Outlook, released on October 6, PIMCO said the recent rise in energy prices has pushed up inflation and led investors to expect further monetary tightening across major economies. However, it expects some of those rate increases may eventually prove unnecessary.

"Our baseline is that the Federal Reserve and other major central banks ultimately won't need to fully deliver the amount of interest rate hikes currently p...