Morgan Stanley revised its Bank of England outlook on Friday, now expecting
25bps hikes in November and again in February after previously forecasting no
rate moves in the foreseeable future. The bank said it has formally shifted to
two quarter-point increases and flagged tighter fiscal policy as the key
potential catalyst. Analysts expect growth to slow at the start of next year but
judge near-term risks balanced given strong global growth. The Bank of England
last week held rates, warned a prolonged Iran war could force further
tightening, and projected inflation above 4% in early next year.
