Second Indian interest rate hike in a row

India's central bank raised on Wednesday borrowing rates for the second time in as many months as it seeks to tame inflation in Asia's third-largest economy.

The Reserve Bank of India (RBI) said the benchmark repo rate, the level it lends to commercial banks at, would be increased by 25 basis points to 6.50 percent.

India's retail inflation recently touched 5.00 percent, above the central bank's target of around 4.00 percent, on the back of higher oil prices.

Last month's hike was the first in over four years. Five members of the bank's monetary policy committee voted in favour of the latest increase and one against.

India's economy has shown signs of revival due to a boost in manufacturing and consumer demand after a downturn blamed on a shock cash ban in late 2016.