The Reserve Bank of India has raised rates by 25 basis points this week, but more significant than the increase itself was the Governor's message that rate cuts are no longer on the table and that rates are likely either to remain where they are or move higher. The era of cheap money is therefore coming to an end, and that matters because the cost of capital does not stay inside the finance department. It eventually reaches the factory floor.

Dear Readers, A storm of natural disasters is hovering over us. Maharashtra has declared drought in half its districts, raising the prospect of a wider water, energy and food crisis. The situation is serious enough for some to comment that India may soon need a Pani Express, or water train, like a neighbouring country. The buildup of a super El Nino , the biggest on record, is fuelling major concerns.

Readers/Viewers , natural calamities are beyond our control. Wasting water is not. There is little any individual can do about the monsoon, but there is plenty that can be done about consumption. Saving water is no longer merely an environmental message. It is becoming an economic necessity. Advt

The same logic applies to money. The Reserve Bank of India has raised rates by 25 basis points this week, but more significant than the increase itself was the Governor's message that rate cuts are no longer on the table and that rates are likely either to remain where they are or move higher.

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