All the six members of the Monetary Policy Committee (MPC), headed by the RBI Governor, unanimously voted for the latest rate hike, taking the repo rate to 4.9 per cent.
EMIs set to rise as RBI hikes repo rate; the second increase in 5 weeks.
The central bank raised its inflation projection for the current fiscal year to 6.7 per cent, from 5.7 per cent predicted in April.
On growth, the RBI expected the Indian economy to expand at 7.2 per cent this fiscal, same as previously forecast.
The Standing Deposit Facility rate and the Marginal Standing Facility Rate were accordingly adjusted higher by the same quantum to 4.65 per cent and 5.15 per cent, respectively.
RBI Governor announced steps to increase penetration of digital payment system, proposes to link credit cards to UPI platforms.