[Morgan Stanley: Adjusts ECB Rate Hike Expectations, 50 Basis Points Each in June and September] Jin10 News, March 23 – Morgan Stanley's rate strategists Luca Salford and Maria Chiara Russo stated in a report that the ongoing Middle East conflict, limited observability of buffer zones, and the central bank's preliminary analysis of a stagflation environment have prompted adjustments to Morgan Stanley's central bank forecasts. Morgan Stanley now expects the European Central Bank (ECB) to raise rates by 50 basis points each in June and September 2026, while retracting its rate hike expectations for 2027. According to LSEG data, financial markets currently anticipate the ECB will raise rates three times this year. The strategists also predict that under their baseline scenario for the ECB's rate path, the 10-year German Bund yield will be 2.80% by the end of 2026 and 2.70% in 2027.