[Capital Economics: Asian Central Banks Unlikely to Rush into Reversing Rate Hikes] According to a report by Jinse Finance on July 7, Gareth Leather, Senior Asia Economist at Capital Economics, stated that given the rising risks of food price increases due to the El Niño phenomenon, Asian central banks are unlikely to rush into reversing 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 has reduced the urgency for further tightening, the El Niño phenomenon may prompt them to remain cautious. The impact of El Niño could be more significant than the energy shock, as food carries a higher weight than energy in the consumer price baskets of Asian countries. Capital Economics continues to expect India, Pakistan, and South Korea to further tighten monetary policy in the coming months.