Morgan Stanley Sees BoE Rate Hikes Coming in November and February

Morgan Stanley has revised its forecast for Bank of England interest rate hikes. The investment bank now predicts two 25 basis point increases in November and February, a significant change from its previous expectation of no hikes.

This decision was made in light of the robust global growth and potential catalysts for further tightening, including fiscal policy.

The Bank of England kept rates on hold last week but warned that they might need to rise if tensions with Iran escalate. The central bank also predicted that British inflation will exceed 4% early next year.