New Delhi, Sept. 13 -- With August inflation slightly above the 2 per cent mark, hopes for a rate cut in October have dimmed, said SBI Research in its latest report.

The report added that the rate cut in December also appears uncertain, especially when weighed against the stronger-than-expected growth estimates for the first two quarters of the fiscal year.

"With August inflation print a tad higher than the 2 per cent mark, a rate cut in October looks onerous. Even a rate cut in December looks a little difficult if growth numbers for Q1 and Q2 (estimates) are taken into consideration," the report added.

The report added that changes in GST rates on services could reduce inflation on non-food items by another 40-45 basis points, based o...