Morgan Stanley Predicts Two 25bps Rate Hikes from Bank of England
1 report, 1 independent
Updated Fri 00:00
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What happened
Morgan Stanley has revised its interest rate call for the Bank of England. The firm now predicts that the central bank will implement two 25 basis point hikes in November and February. This forecast represents a formal change from previous expectations of no hikes for the foreseeable future.
From 933thedrive.com
Why it matters
The forecast comes as the Bank of England maintained current rates last week. Analysts noted that fiscal policy remains a key potential factor that could influence further monetary tightening. The central bank has also warned that rate increases may be necessary if the Iran war continues, while predicting UK inflation will peak above 4% early next year.
From 933thedrive.com
Who's involved
- Bank of EnglandCentral bank of the United Kingdom whose policy is being forecast
- Morgan StanleyU.S. investment bank that issued the updated forecast
- pound sterlingOfficial currency of the United Kingdom and other territories
Keep exploring
The entities involved
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Bank of England
central bank of the United Kingdom
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Morgan Stanley
U.S. investment bank
Related events
- Financial institutions and central banks are forecasting future rate hikes due to renewed hostilities in the Middle East.
- Central bank targets UK inflation rate, influenced by energy price cap hikes and financial forecasts from investment firms.
- War in the Middle East is driving energy prices, leading financial institutions like Citigroup and Morgan Stanley to revise forecasts for Fed tightening.
- Central Bank actions are influencing forecast models used by Morgan Stanley and Bank of America.
- Lenders, including Barclays, Santander, and others, are announcing rate hikes which are increasing borrower costs due to inflation fears driven by the Middle East conflict.