Morgan Stanley forecasts two US rate hikes

Morgan Stanley expected the U.S. Federal Reserve to raise interest rates twice this year, anticipating a 25 basis point hike at the September and December meetings. This is driven by ongoing inflationary pressures and rising energy prices, with the bank forecasting that inflation will slow down and be less convincing, thus increasing the likelihood of continued monetary tightening. Additionally, the bank projected that the European Central Bank would increase interest rates by 25 basis points in December, bringing the rate to 2.75%, amid continued rises in energy costs and economic growth.

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