"We think the Reserve Bank will have a tough time to reason out a rate cut if inflation remains worrisome," she said. "If the Reserve Bank does cut the rate it will be surprising."
The World Bank and the International Monetary Fund earlier this week cut their predictions for India's economic growth. The World Bank expects India's economy to grow 6 percent for the year, and the International Monetary Fund forecasts growth of just 4.9 percent, down from its earlier projection of 6.1 percent.
The government also revised its July industrial production data, saying output contracted 0.2 percent, down from its earlier estimate of 0.1 percent growth.
August's uptick was the biggest rise in industrial output since February, according to FactSet.