Morgan Stanley: If oil prices rise to $120, it will pose a serious threat to Asian economies.

According to a research report by Morgan Stanley on March 23, analysts stated that if oil prices rise to $120 per barrel, it could pose a significant threat to economic growth in Asia. These analysts believe that a sustained increase of $10 per barrel in oil prices could directly negatively impact Asian GDP growth by 20 to 30 basis points. They pointed out that if oil prices reach $120 per barrel, Asia's oil and gas spending will account for 6.3% of its GDP. If the conflict continues and commodity prices remain high, the effectiveness of policy buffers will also be weakened. If the conflict persists, central banks in the Philippines, Indonesia, India, and South Korea may have to raise interest rates starting from the end of the third quarter or the fourth quarter.