Morgan Stanley: Oil Price Rising to $120 Would Pose Severe Threat to Asian Economies

BlockBeats News, March 23rd, According to analysts at Morgan Stanley, if the price of oil rises to $120 per barrel, it could pose a significant threat to Asian economic growth.

These analysts believe that a $10 increase in the price of oil per barrel is likely to have a direct negative impact of 20 to 30 basis points on Asia's gross domestic product growth. They point out that if the oil price rises to $120 per barrel, Asia's petroleum and natural gas expenditure will account for 6.3% of GDP. If the conflict persists and commodity prices remain high, the strength of policy buffering will also be weakened. If the conflict continues, the central banks of the Philippines, Indonesia, India, and South Korea may have to raise interest rates from the end of the third quarter or the beginning of the fourth quarter.