The Reserve Bank of India (RBI) on Wednesday announced a  25 basis points hike in repo rate to 6.5 percent.

This the first time since October 2013 that the central bank has hiked borrowing costs at two consecutive policy meetings. Five of the six members on the rating panel voted for a rate increase.

The RBI cited rising crude oil prices, volatility in global financial markets, and uncertainty around the full impact of MSP (minimum support price) on inflation among the key factors for its rate-hike decision in its third bi-monthly monetary policy review.