Indian inflation hits two-year low but no early rate cut seen

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NEW DELHI, Sept 15 (AFP): India's inflation rate fell to a two-year low, official data yesterday showed, but economists expected the central bank to remain hawkish with global oil prices surging.
The wholesale price index, India's most closely watched cost-of-living monitor, showed annual inflation slowed to 3.52 per cent for the week ended September 1 -- its lowest level since August 2005 -- from 3.79 per cent a week earlier.
But economists said they expected no early easing of interest rates amid worries that record international crude oil prices could trigger a rise in state-set domestic fuel prices.
"I think the bank is still hawkish, they believe inflationary expectations have not yet been doused," DK Joshi, principal economist at leading credit rating agency Crisil, said.
Joshi said he expected the bank to leave benchmark rates unchanged at its next monetary policy meeting in late October.