has taken several important policy decisions over the years in the areas of affordable and low income housing. it has played an important role in ensuring that the affordability component merges well with the overall sectoral strategy. two factors that have clearly emerged as key drivers in the indian housing market are : ( 1 ) a wider group of stakeholders and a multiplicity of institutions, and ( 2 ) enhanced confidence in the housing finance industry of all stakeholders. 5. the national housing and habitat policy 2007 lays emphasis on development of affordable housing and elimination of acute housing shortage among the poor. accelerated supply of serviced land, expansion of housing finance market and facilitating the private sector participation in the sectoral growth are also emphasized in the policy. with the establishment of individual home loan financing through commercial banks & housing finance tenth five year plan document of the planning commission bis central bankers ’ speeches companies, access to home loan finance has expanded considerably. however, access to finance for the very poor and those working in informal sector, to fulfil their affordable housing needs, still needs to go a long way. 6. recognising the importance of housing and real estate sectors, the union budget for 2014 – 15 included several announcements such as – • ₹ 8000 crores allocated to the rural housing fund run by nhb. • ₹ 7, 060 crores allocated for development of 100 new smart cities in the country. • relaxation of fdi norms in the real estate sector. • ₹ 4, 000 crores allocated for low - cost housing and ₹ 50, 000 crores for urban housing. • slum development to be treated as corporate social responsibility ( csr ) activity. • real estate investment trusts ( reits ) introduced. sebi has since issued guidelines in this regard. • increase in deduction limit on interest paid on home loans. 7. state governments have also played an important role in promoting affordable housing for the lower segments of the population. many of the state governments have initiated programmes aimed at eradication of slums and provision of formal housing to the lower income segments. these programmes, which are at various stages of execution, have given to the people, hopes for a better life and hopes for a brighter tomorrow. other policymakers such as the reserve bank of india and the national housing bank are also playing their part in promoting growth through housing. it is heartening to note that the housing finance sector, which was in its infancy just two decades back, is now a thriving and vibrant part of

we don't want this transition to be more difficult than it has to be. but we remain focused on our mandate. higher interest rates in the short term will bring inflation down in the long term. and getting through this difficult phase will get us back to price stability with sustained growth. as we move forward, we will be watching carefully to assess the impact of higher rates on spending and how this is feeding through to price pressures. we will also be watching to see how global supply disruptions resolve and to what extent this translates into lower inflation in canada. finally, we'll be watching inflation expectations closely to assess how households and businesses are responding to slowing growth and spending. with that summary, senior deputy governor rogers and i are now pleased to take your questions. 3 / 3 bis - central bankers'speeches