Indian government bond yields have risen only partially despite higher global energy prices and bond yields. RBI Governor Sanjay Malhotra said this on Saturday.

Malhotra was speaking at the 5th Kautilya Economic Conclave in Delhi. The three-day event runs from October 3 to 5 under the theme “Resilience in an Age of Flux”.

He credited prudent fiscal management, credible monetary policy and easing structural inflation pressures. He said India has seen a long period of financial stability since the pandemic.

The Governor warned against complacency. He said long periods of stability can encourage risk-taking and weaken the appetite for prudence.

He also flagged risks for emerging markets with high foreign-held debt. Capital outflows could rise as carry trades unwind, he noted.

The conclave brings together over 180 policymakers and economists from about 30 countries. Vice President CP Radhakrishnan delivered the inaugural address. Finance Minister Nirmala Sitharaman will address a special plenary on India’s economic priorities.