Morgan Stanley says rise in interest rates hurts mortgage demand

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FILE PHOTO: The logo for Morgan Stanley is seen on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City

(Reuters) - Morgan Stanley has seen moderation in loan growth and a lower mortgage demand due to rising interest rates, co-President Andrew Saperstein said in a conference on Tuesday.

Decades-high inflation has left most policy makers worried, forcing them to aggressively raise benchmark interest rates and curb spending.

The Federal Reserve is expected to tighten monetary policy further next week after consumer prices did not ease as expected in August.

Traders are pricing in a 90% chance of a 75 basis point rate hike at the next Fed meeting, up from 57% a week earlier, according to CME Group's Fedwatch Tool.

(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Shinjini Ganguli)