The Reserve Bank of India (RBI) faces immense pressure to raise rates, despite Governor Malhotra's reluctance. A weakening rupee, driven by high energy costs and capital outflows, signals the "cheap-money era" is ending. The author critically argues that delaying "blunt tool" rate hikes is perilous, risking accelerated capital exodus and dim loan prospects. Prolonging the pause may necessitate painful, higher-for-longer rates, nullifying past credit initiatives. Urgent monetary tightening is crucial to avert a severe economic crisis.