Podcast | All you need to know about the RBI rate hike

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The decision was unanimous, with the Bank of England's Monetary Policy Committee (MPC) members voting 9-0 to increase interest rates.

In line with market expectations, the Reserve Bank of India (RBI) Wednesday increased its benchmark interest rate by 25 basis points on inflationary concerns. In its last revision, on August 2, 2017, rates were cut by 25 basis points to 6 per cent.

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.

Naveen Kukreja, CEO and Co-founder, Paisabazaar.com: "Home loans will become costlier for fresh borrowers as and when the banks raise their respective MCLRs".

"I agree with markets", said Samuel Tombs, an economist at Capital Economics Ltd.

"Fuelled by intense competition from newer banks, the fixed rate bond market has notably improved since the last base rate rise in November".

"The main argument for raising rates now is that it gives the Bank more room for manoeuvre when the next downturn hits".

The Bank of England has raised interest rates to the highest level since 2009 - but what does that mean for your household?

Where will rates go from here? "The likely impact of recent hikes in the minimum support price (MSP) of agricultural products on inflation has, probably, also influenced the committee's decision to pro-actively hike interest rates".

Commonwealth condemns 'excessive' force by Zimbabwe soldiers
Well, the country will be waiting to see what the ZEC Chairperson, Mr Priscilla Chigumba will be announcing in a couple of days. Nkululeko Sibanda, MDC alliance spokesman, said: "The results are a gimmick to try and prepare Zimbabwe for a rigged election".

Crashing out of the bloc without a deal could require the United Kingdom central bank to slash interest rates and introduce emergency measures in an effort to steady the financial system and wider economy.

"Weather effects - both the snow-related disruption in February and March and the unseasonably warm weather and long sunshine hours in May and June - seemed to have accounted for around half of the second quarter rise", it added.

Sterling fell to a one-week low against the United States dollar on Thursday, paring back initial gains following the announcement of a 0.25 percentage point interest rate hike.

Carney reiterated there could be "consequences for monetary policy" if Brexit led to a shock for Britain's economy.

They project the consumer price index will rise to 2.5% by September 2018 before falling to 2.2% by the same time in 2019, 2.1% by the same time in 2020 and 2% by the end of September 2021.

It is also implies rates will rise substantially faster than the market now expects.

Sellers in control of Sterling as further rate hikes get priced out.

The central bank said inflation in two years' time was likely to be 2.09 percent, above the BoE's 2 percent target. The RBI has forecasted a mildly rising inflation trajectory - 4.8% in H2FY18 and 5% in Q1FY20. Arvind Chari, head-fixed income & alternatives, Quantum Advisors, said if upside risks indeed pan out in the next 3-6 months, expect the repo rate to be hiked further to 7.0%.

The Scottish Fiscal Commission, which determines the spending envelope for the Scottish Government, has forecast Scotland's GDP growth will stay below 1 per cent for five years.