Morgan Stanley sees two 25-basis-point Bank of England hikes

Sep 25, 2026 08:41 (30d ago)

Morgan Stanley revised its Bank of England forecast to include two rate increases.
Two 25-basis-point hikes are expected in November and February.
The BoE held rates last week and forecast inflation above 4% early next year.

Morgan Stanley now expects the Bank of England to raise interest rates by 25 basis points in November and again in February, reversing its previous forecast of no hikes for the foreseeable future. The bank said fiscal policy could drive additional tightening, while it expects growth to slow around the turn of the year but sees balanced near-term risks because global growth remains robust. The BoE held rates last week and warned they could rise if the Iran war drags on, while forecasting British inflation will exceed 4% early next year.