Reserve Bank of India chief Bimal Jalan said on Friday he was not considering a cut in the short-term repo rate, but added he was in favour of a soft monetary policy bias.

"We are neither comfortable nor uncomfortable with bond yields. The market is going well," Jalan told reporters on the sidelines of a money market dealers seminar.

"I have always said we are in favour of soft monetary bias...not softer."

Bond traders have been speculating about a cut in the repo rate after bond yields had touched record lows earlier this month due to excess liquidity fuelled by strong forex inflows.

Asked whether the central bank was considering one, Jalan said: "No repo rate cut."

Bond yields have rebounded in the past few days as traders fear that a war in the Middle East could push up prices of crude oil, India's biggest import item, stoking domestic inflation and putting pressure on low interest rates.