Economists at JPMorgan Chase stated that persistently high oil prices could lead several Asian central banks to adopt a more hawkish monetary policy stance. The recent surge in crude oil and natural gas prices has delivered a trade shock to many economies across the region. They noted that fiscal policy would likely serve as the primary buffer for households against the initial impact. The analysts suggested that rising energy costs increase the likelihood of monetary policy tightening in Singapore and Malaysia, while simultaneously reducing the possibility of interest rate cuts in Indonesia and the Philippines. Regarding South Korea, they indicated that whether the central bank would be compelled to raise rates would depend on the persistence of any oil price-driven effects and their potential to shape inflation expectations sufficiently to generate second-round effects on core inflation.