Reserve Bank of India Governor Bimal Jalan said on Monday that he did not see any inflationary pressure in the near future in the face of soaring oil prices due to tension in the Middle-East.
"We do not see any inflationary pressure in the near future," he told reporters in New Delhi.
"As of now, inflation has remained benign. Despite drought, we had low inflation," Jalan said after his meeting with Finance Minister Jaswant Singh.
Inflation based on wholesale price index rose to 3.34 per cent in the December end.
On the liquidity situation, he said it was in "plentiful", and was creating short-term management problems. But RBI was monitoring the situation and as and when required, it would resort to open market operations, he added.
"Liquidity adjustment facility is taking care of the situation, and as of now there is no problem. RBI will come into play as and when it is required," he said. High liquidity in the market was mainly due to high inflow of forex now at over $70 billion.
Jalan also said there was no plan to cut repo rate and RBI would continue to maintain softer interest rate bias.