New Delhi, Jan 13: Reserve Bank governor Bimal Jalan said today 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 when asked if he expected any inflationary pressure on account of tension in the middle east.
"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 liquidity, which was plentiful, was creating short term management problems. But RBI was monitoring the situation and as and when required, it would resort to open market operations.
"Liquidity adjustment facility (LAF) 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 dollars.
Jalan also said there was no plan to cut repo rate and RBI would continue to maintain softer interest rate bias. Bureau Report