With inflation now at 4.82% and climbing, the RBI’s 5.25% repo rate is losing its grip. What that means? Your bank deposits are earning less in real terms, while credit growth hits 19.1%; a sign money is still cheap, even as prices rise. Households are already shifting: away from savings accounts, toward mutual funds, gold, and equities. Why? Because inflation eats returns. In 2010-13, when real returns went negative, gold imports surged; and that’s exactly what’s happening now. The RBI’s delay in acting could cost more later. A small hike now might prevent a bigger shock tomorrow. If you’re saving or borrowing, pay attention; the real rate isn’t just a number. It’s what’s left after inflation. And it’s vanishing.