Morgan Stanley: If oil prices rise to $120 per barrel, it will pose a significant threat to Asian economic growth.

Gate News reports that on March 23, Morgan Stanley analysts stated in a research report that if oil prices rise to $120 per barrel, it could pose a significant threat to Asian economic growth. The analysts believe that a sustained $10 increase in oil prices per barrel could directly result in a 20 to 30 basis point negative impact on Asia’s GDP growth. The report notes that if oil prices reach $120 per barrel, Asia’s oil and natural gas expenditures will account for 6.3% of GDP. Additionally, if conflicts persist and commodity prices remain high, policy buffers will be weakened. If the conflict continues, central banks in the Philippines, Indonesia, India, and South Korea may have to start raising interest rates from the end of the third quarter or the fourth quarter.

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