The Reserve Bank of India has decided that cheap money has had its run. By raising the repo rate by 25 basis points to 5.50 percent, the Monetary Policy Committee has changed the economic mood. This rate hike in nearly four years marks a consequential shift in India’s economic calculus, from nurturing growth to guarding against inflation. The RBI’s dilemma is unusually revealing. India is growing at a pace that allows the central bank to tighten without fearing an immediate r