Morgan Stanley on the 25th revised its UK interest rate outlook, predicting that the Bank of England will raise rates by 25 basis points each in November and February next year. Previously it had expected no rate hikes for the time being. In a research note, analysts said they had formally revised their Bank of England forecast to two rate hikes per quarter, and expressed the view that fiscal policy would be the main potential catalyst for further tightening. They also noted that growth is expected to slow around the year-end and New Year period, but that near-term risks are balanced given the resilience of global growth.
Morgan StanleyMorgan Stanley is the forecaster revising its BoE rate outlook, not a subject of direct impact
Morgan Stanley forecasts two BoE rate hikes, boosting GBP rate-differential appeal
