According to Jin10, Morgan Stanley adjusted its forecast for Bank of England interest rates on Friday and now expects the BOE to raise rates by 25 basis points in November and again in February, after previously expecting no hikes in the foreseeable future. The firm's analysts said in a research report that it had formally changed its BOE forecast to two quarterly rate hikes, with fiscal policy seen as a key potential catalyst for further tightening. They added that economic growth is expected to slow at the start of the year, but said short-term risks are balanced given strong global growth. The BOE kept rates unchanged last week, but warned that rates may need to rise if the war in Iran continues, and forecast that UK inflation will exceed 4% in early 2027.