Rajeev Radhakrishnan, Chief Investment Officer for fixed income at SBI Mutual Fund, highlighted that ongoing geopolitical tensions and a weaker Indian rupee could necessitate a reversal in the Reserve Bank of India's (RBI) monetary policy, potentially leading to rate hikes in 2026. He noted that persistent supply shocks could keep inflation expectations elevated, impacting the fiscal direction and requiring higher subsidies. Radhakrishnan emphasized the importance of navigating the 'Impossible Trinity'—the conflict between exchange rates, capital flows, and interest rates—while maintaining an independent monetary policy. He mentioned that the anticipated ₹3 trillion dividend from the RBI is already priced into the market and should not materially affect short-term yields. For conservative investors, he recommends target maturity funds or short-tenor investments to hedge against rising commodity prices and a weaker rupee. Overall, he advises retail investors to consider accrual strategies in the current rising yield environment.