Morgan Stanley Sees Two BoE Rate Hikes Ahead of November

Morgan Stanley has revised its Bank of England (BoE) rate call, now expecting two hikes in the coming months.

The bank had previously predicted no interest rate increases for the foreseeable future but has changed its mind after recent developments in commodity markets and the Middle East conflict.

In a statement, Morgan Stanley said it saw the September meeting of the BoE's Monetary Policy Committee (MPC) as 'quite balanced' with uncertainty surrounding the November hike and the path ahead.

The bank cited recent newsflow in commodity markets, including oil and refined products, which has not improved. While the BoE may hold rates steady if there are signs of improvement in supply, it is challenging to maintain a prolonged hold amid current market conditions.