Gold Finance reports that Morgan Stanley expects the Bank of England to vote 6:3 in favor of keeping interest rates unchanged. However, the policy statement may see a dovish adjustment, hinting at potential action in November.

"Given all the data since August, and the scale of the current restrictions, we believe that market pricing of a rate cut in September should be slightly higher. However, even then, we think the chance of a rate cut is no more than 30%."

Morgan Stanley expects the Bank of England's QT next year to be £100 billion, up from the previous estimate of £900 billion, but still believes that the risk is skewed towards lower.

"November is the Bank of England's key meeting this year, and we expect it to lay the groundwork for a faster pace of rate cuts as the disinflationary momentum in service prices strengthens. We expect rate cuts in November and December, with the bank rate reaching 3.25% by next August." (Golden Ten)