However, while the overall credit growth continued to remain subdued, credit growth to the commercial real estate sector remained high well above the overall credit growth (Table 4). As indicated in para 19, in the wake of the global financial crisis, the Reserve Bank had temporarily modified its prudential guidelines for restructuring of advances.
Second, because asset prices are forward-looking, they should contain information of value for the policy-setting process. If those signals of market participants' expectations are blurred by extreme movements, important information may be misread or lost. Of course, some uncertainty is inevitable and quite manageable in the course of normal policymaking.