Morgan Stanley has joined a growing number of major Wall Street banks in taking a more hawkish view on global interest rates, forecasting additional monetary tightening by both the U.S. Federal Reserve and the European Central Bank as inflationary pressures remain persistent.
According to Reuters, Morgan Stanley expects the Fed to raise its benchmark interest rate by 25 basis points at its September 15-16 meeting and deliver another quarter-point increase in December. The forecast follows recent U.S. inflation data that came in stronger than expected.
