Pune: Reserve Bank of India (RBI) Governor Bimal Jalan on January 6 said the apex bank will continue with its soft monetary policy stance and reiterated that inflation outlook in the country was good.

"Inflation outlook is good, very benign and despite the high oil prices and drought it is at a historical low of around 3.5 per cent, which is very unusual", Jalan said on the sidelines of National Institute of Bank Management's annual day function in Pune.

Asked about the interest rate outlook, given the tame inflation and huge foreign exchange inflows, he said it was expected to be benign.

Referring to the repo rate, Jalan said as and when necessary it would be changed but there is no proposal to cut the rate as of now and the yields are for the market to decide.

On the bank rate, which is the lowest since 1973, he said there was no change planned till the end of the current fiscal.

On surplus liquidity in the market due to foreign inflows, the RBI Governor said management of this excess inflow posed a problem. The foreign exchange reserves as on the last week of December had crossed $ 70 billion.

"Any repayment of external debt was for the government to decide and I think they have already repaid some amount," he added.

PTI