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Money & Banking - Credit Policy
`Credit derivatives a welcome step'

Our Bureau

Kolkata, April 27

Debt fund managers feel that the favourable base effect till July will knock down headline inflation to the short-term target of 5 per cent set by the central bank. "This should give RBI the flexibility to change policy measures, if required, during the next quarterly review in July, factoring in the progress of the monsoon as well as the response of other central banks to changing macroeconomic developments across the globe," Mr Sameer Kulkarni, Fund Manager - Fixed Income, Fidelity MF, said.

The market is yet to see the full impact of last month's policy actions of CRR and repo rate hikes on inflation, money supply and credit growth, it is pointed out. The introduction of credit derivatives, although limited, is a welcome step and will help in the further development of the bond market, Mr Kulkarni said.

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