Finance Minister Pranab Mukherjee on Wednesday said that the RBI measure to hike key interest rates will help in moderating inflation. Talking to media in New Delhi, he said, though the hike in interest rate is substantial but it was necessary in the given situation. The RBI on Tuesday hiked its key short-term lending and borrowing rates by 50 basis points to contain inflation which is nearing the double-digit mark. Admitting that inflation at 9.4 per cent in June, is unacceptable, Mr Mukherjee said, it is a global phenomenon and the whole world is reeling under the impact of rising prices of fuel and other commodities. He also hoped that by the year end, inflation will come down to six to seven per cent.When asked to comment whether RBI is nearing the end of the interest rate increase cycle, he said, it is very difficult to predict and much will depend on the movement of international commodity and fuel prices. Yesterday's rate hike by the Reserve Bank, 11th since March 2010, evoked mixed reactions, while the industry feels the decision would hurt investment and pull down growth.AIR correspondent reports that the RBI's decision is likely to make auto, home and corporate loans expensive and many banks have indicated that they would be increasing their lending and deposit rates in response to the hike announced by the Central bank.