Morgan Stanley sees 150 bps BoE rate cuts in 2024

FILE PHOTO: Bank of England rises intrest rate to 1.75% as inflation hits 13%

MILAN (Reuters) – Morgan Stanley expects the Bank of England (BoE) to cut interest rates by 150 basis points in 2024 after stopping its tightening cycle in March of next year.

“The BoE stops hiking as Bank Rate hits 4.0% in March 2023. With the inflation target in sight, and unemployment on the rise, we expect 150bp of cuts in 2024,” the U.S. bank wrote in a note published late on Sunday.

(Reporting by Danilo Masoni)