With the next Federal Reserve policy meeting slated for next week, Morgan Stanley said Friday that the central bank is unlikely to indicate the end of the tightening cycle, but weaker data flow over the next six weeks should push the Fed towards a pause.

The comments come as the Fed’s Federal Open Market Committee, or FOMC, the central bank’s rate-setting body, prepares to make its next decision on Feb. 1. Analysts widely expect the FOMC to raise interest rates by another 25 basis points but there is some question about the language Fed Chair Jerome Powell will use when providing guidance about policymakers’ intentions for the future.

Morgan Stanley predicted that the Fed will remain cautious about its guidance, leaving open the possibility of further rate increases. However, the firm believes the February meeting might see the last interest rate hike of this cycle, as long as the data coming in before the central bank’s scheduled decision in March supports a pause.

“The FOMC is unlikely to signal the end of the tightening cycle.” Morgan Stanley contended. “In the [policy] statement, it could replace ‘ongoing increases’ with ‘further increase’, indicating that the Committee sees the peak coming into view.”

The firm added: “To counterbalance the softening language around future rate increases, the Committee will likely add the assessment that it will be appropriate to keep rates restrictive for some time.”

Morgan Staley supports the consensus view that the Fed will slow its rate hikes to 25 basis points at the upcoming meeting. The firm added that it believes rate hikes could end in February.

“We continue to see the policy rate peaking at 4.625% at this meeting, but our call depends crucially on the meaningful amount of incoming data between now and the March FOMC, with two prints each for [employment data] and CPI,” the firm stated.

Morgan Stanley’s view represents a relatively dovish prediction compared to the Wall Street consensus. According to the CME’s FedWatch tool, markets are currently pricing in an 84% chance that the Fed will announce another 25-basis-point rate hike at its March meeting. Meanwhile, action on Wall Street points to a 35% chance of yet another 25-basis-point hike at the May meeting, which would bring the central bank’s key rate above 5%.

In broader financial news, the Nasdaq Composite (COMP.IND), S&P 500 (SP500), and Dow (DJI) all traded higher after the latest round of inflation data.