Morgan Stanley analysts expect Fed to cut U.S. rates in October

NEW YORK (Reuters) - Morgan Stanley analysts said on Thursday the Federal Reserve will likely reduce key U.S. lending rates by a quarter point in October, making their prediction a day after policymakers cut them for the first time since 2008.

"We still expect a follow-up of (25 basis points) this year, but October now seems more likely than September, as the FOMC appears poised to wait for further evidence that downside risks are weighing on the economy and holding down inflation," the analysts wrote in a research note.

(Reporting by Richard Leong; Editing by Bernadette Baum)

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