Meanwhile, reverse repo, the rate at which the central bank borrows money from commercial banks within the country, was adjusted to 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 6.75 per cent.
"While an interest rate rise is positive news for people living on their savings income, or holding pensions and investments, it may prove to be the tipping point for those in financial difficulty or struggling with debt", said Richard Haymes, head of financial difficulties at credit data firm TDX Group.
In terms of inflation, RBI said, it is projected at 4.6 per cent in second quarter, and 4.8 per cent in the second half of 2018-19.
The statement noted that "fuel and light group" inflation rose sharply in the period since the previous policy review, pulled up by liquefied petroleum gas (LPG) and kerosene prices.
The Bank of England has increased interest rates for the second time since the financial crisis in a widely expected move.
Trump thanks North Korea for returning remains of USA war dead
But many experts say those are neither irrevocable nor serious steps that could show the country is honest about denuclearisation. Trump asserted last week that his administration's plan to dismantle North Korea's nuclear weapons is "going very well".
The Reserve Bank of India governor-headed MPC in a statement, issued after three-day meeting, said, "robust corporate earnings, especially of fast moving consumer goods (FMCG) companies, also reflect buoyant rural demand".
He said the final Brexit deal was "potentially the most important" factor that would influence monetary policy in the coming months and years, and added that the Bank was ready for all outcomes.
Some economists have raised doubts about the case for the rate hike.
Bank deposits at Rs 114.8 lakh crore grew by 0.5 percent during April 1- July 18 compared with a contraction of (-) 1.5 percent growth in the corresponding period previous year. "Today's "decision of the MPC is consistent with the neutral stance of monetary policy", given the upside pressure that inflation continues to exhibit".
"We don't expect another rate rise before May 2019".
With levels of household debt rising in recent years, some campaigners are concerned that many families will struggle to afford the consequent increase in their mortgage costs.
He said "limited" and "gradual" increases were required to bring inflation down to its 2 per cent target now that the United Kingdom economic growth appeared to be picking up again.
However the MPC says it "continues to recognise that the economic outlook could be influenced significantly by the response of households, businesses and financial markets to developments related to the process of European Union withdrawal". Markets are already expecting a rise, and from here on in, further hikes are going to be few and far between because United Kingdom economic growth is so fragile.
And I got an opportunity to see them and learn about them and they got an opportunity to learn about me and we became friends. The focus now switches to how the four-time MVP will respond , if he responds at all, to the President's petty insult.
Symptoms can include muscle aches, headache and fever. "Get rid of even small amounts of standing water around your home". There have been 33 fatal cases of West Nile in Pennsylvania since the DEP first started monitoring the virus in 2000.
Davutoğlu said the USA decision is a risky move and "incompatible with the most simple diplomatic courtesy and mutual respect". Turkish Foreign Minister Mevlut Cavusoglu said he and Pompeo agreed to move forward with diplomatic negotiations.
Iwobi recently revealed that he had been about to leave the club thrice, but new manager Unai Emery seems to believe in him too. His willingness to ask for the ball and make progressive runs and passes has boded well with the system they are playing in.
Pompeo said the United States "will never seek domination in the Indo-Pacific", and that "we will oppose any country that does". Government spending by itself "can never address the Indo-Pacific's needs", he added.
City stormed to the Premier League title in record-breaking fashion last season, as well as winning the Carabao Cup. "We talked only about 'can I arrive on Monday instead of Sunday?' At this moment there is no problem for Hazard".
Brown continued: "This season, especially after the World Cup that he's had, he's going to start expressing himself a lot more". A number of potential swap deals between Manchester United and Bayern Munich are being reported today by the football press.
U.S. jobs growth slows more than expected in July
Despite many company executives complaining that they can not find workers to fill open positions, wage growth remains sluggish. Strong demand from consumers and businesses sharply reduced the stockpiles of goods held on many store shelves and warehouses.
Portugal and Spain brace for record-breaking temperatures
If temperatures continue to climb this weekend, the record for the highest temperature ever recorded in Europe will be broken. Ladbrokes also cut odds on August highs beating Britain's 38.5C (101.3F) record, set on August 10, 2003, at Brogdale, Kent.
Switzerland: Twenty dead in WW2 plane crash
Daniel Knech of the Swiss safety investigation service SESE said the crew did not have time to send out a distress signal. Police said the aircraft crashed into the mountain's western flank about 2,540 meters (8,330 feet) above sea level.
Venezuelan president attacked in drone explosion
Perez was hunted down and killed by Venezuelan forces. "We showed that they are vulnerable", the group said in a tweet. Maduro has steadily moved to concentrate power as the nation reels from a crippling economic crisis.
Google to launch CENSORED search engine in China
Depending on when the Chinese government approves the "toned down" Google, the app could launch anytime in the next 6-9 months. Brin has stepped back from day-to-day operations and the internet giant is now run by Chief Executive Officer Sundar Pichai .
China fires salvo in trade war with United States
A first round of tariffs came into effect on 6 July, when the U.S. imposed 25% taxes on $34bn of Chinese imports . Tsinghua University economist Yuan Gangming said the measures China had taken were reasonable.
Winds hinder efforts to tackle California wildfire
Neighbouring wildfires have had similar effects to the Carr fire , evacuating people from the locality and destroying properties. The fire is progressing into the town of Lewiston, Cal Fire spokesman Gabe Lauderdale said in a press video Wednesday morning.
RBI hikes lending rate, loans likely to become dearer
The minutes explained that Brexit is still one of the most important considerations for the bank's rate-setting committee. The central bank hiked interest rates by 25 basis points to 6.5 per cent, in the second such hike in three months.
Dispute over 3D-printed guns raises legal issues
Trump had tweeted earlier that he was looking into the issue, adding, "Already spoke to NRA, doesn't seem to make much sense! ". Gun access advocacy group Defense Distributed was due to put downloadable gun blueprints online on Wednesday.
Apple is the first $1 trillion company in history
Stock buybacks reduce the number of shares a company has on the open market, driving up the price of the remaining shares. The chart below shows the value over time of a $1,000 investment in Apple made at its December 12, 1980 closing price.