Capital Economics: Asian central banks are unlikely to rush to reverse interest rate hikes

```htmlGolden Ten Data reported on July 7th that Gareth Leather, Senior Asian Economist at Capital Economics, stated that, given the escalating risk of food price increases due to the El Niño phenomenon, Asian central banks are unlikely to rush to reverse their recent rate hikes. Central banks in various countries responded aggressively to the earlier surge in energy prices, with many raising rates at least once. Although the subsequent decline in energy prices reduced the urgency for further tightening, the El Niño phenomenon may cause them to remain cautious. The impact of El Niño could be more significant than an energy shock, as food carries a higher weight than energy in Asian consumer price baskets. Capital Economics continues to anticipate that India, Pakistan, and South Korea will further tighten monetary policy in the coming months.```