Morgan Stanley: The policy wording of the Central Bank of the UK may undergo dovish adjustments.

Golden Finance reported that Morgan Stanley predicts that the UK Central Bank will support the Intrerest Rate unchanged with a voting ratio of 6:3. However, there may be dovish adjustments in the policy wording, implying that action may be taken in November. "Considering all the data since August and the scale of existing restrictions, we believe that the market's pricing for a rate cut in September should be slightly higher. However, even so, we believe that the possibility of a rate cut will not exceed 30%." Morgan Stanley expects the scale of the UK Central Bank's quantitative tightening (QT) next year to be 100 billion pounds, previously expected to be 90 billion, but still believes that the risk tends to be lower. "November is the key meeting of the UK Central Bank this year, and we expect it to lay the foundation for a faster pace of rate cuts as the deflationary momentum in service prices strengthens. We expect rate cuts in November and December, and the bank's Intrerest Rate will reach 3.25% by August next year." (Jinshi)