Mumbai: The escalating international crude prices on a possible threat of an US-Iraq war will have a marginal impact on India's inflation, Reserve Bank of India governor Bimal Jalan said.

"The rise in oil prices will have a marginal impact on inflation but we will be able to handle it," Jalan told reporters after inaugurating Fixed Income and Money Market Dealers Association annual conference.

Asked whether the apex bank would review the gross domestic product (GDP) estimate, he said, "It will be done in the April credit and monetary policy."

Referring to the interest rate scenario, he said, "We have always said rates should be soft and not softer and they are soft."

Ruling out an immediate repo rate cut, Jalan said, "Things are going on quite well on the (bond) yields front."

The governor also replied in the negative when asked if there were any plans for a sovereign debt programme.

Addressing the seminar, Jalan said the medium term objective was to create an environment, which would provide less vulnerability to shocks, in a diversified debt and equity market.

The Indian bond/securities market was fairly in its early stages. "This market is liquid but the number of players and volumes are narrow," he said.

Jalan said currently nearly 80 per cent of g-secs were owned by government institutions like banks and Life Insurance Corporation (LIC) and "we have to get it down to the people".

PTI