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Interest Rate Outlook

MORGAN STANLEY · 2026-08-25 · Importance 17 · Surprise 24

Morgan Stanley expects major developed economies to continue running wide fiscal deficits and accumulating public-sector leverage in the coming years. The firm nevertheless assesses households and corporates as financially well positioned for an environment of higher yields. Separately, Morgan Stanley forecasts that gold could exceed $5,000 per ounce in 2027 as expectations for Federal Reserve rate hikes fade, central-bank demand returns, and U.S. fiscal concerns persist.

Key facts

• MORGAN STANLEY predicts gold prices could break above $5,000 an ounce in 2027. source
• MORGAN STANLEY anticipates that major developed economies will continue to face wide fiscal deficits and growing public-sector leverage in the coming years and says households and corporates are well-positioned for an environment of higher yields. source