Govt concerned over asset bubbles

RISK FACTOR: Sharper monitoring of real estate, stock market required

Asset bubbles in real estate and stock markets, induced by credit, have to be carefully monitored, says the Economic Survey. It has sought sharpening of monetary policy and macro-prudential tools to deal with these, due to their implications for the economy and the strength of the financial system. Property prices have been on the upswing, despite difficult conditions in the past four years. For instance, prices in Chennai have risen 166 per cent, 116 per cent in Faridabad, 92 per cent in Kolkata, 87 per cent in Mumbai and 54 per cent in Delhi, shows the National Housing Bank’s ...