(Reuters) - Brokerages including Morgan Stanley are reiterating their expectation of a 25-basis-point interest rate cut by the U.S. Federal Reserve in December, following the nonfarm payrolls data.

Data showed nonfarm payrolls increased by 227,000 jobs last month after rising an upwardly revised 36,000 in October. Economists polled by Reuters had forecast payrolls accelerating by 200,000 jobs last month following a previously reported 12,000 rise in October.

U.S. job growth surged in November after being severely constrained by hurricanes and strikes, but a rise in the unemployment rate to 4.2% pointed to an easing labor market that should allow the U.S. Federal Reserve to cut interest rates again this month.

The Fed's next monetary policy meeting is due on December 17-18.

Here are the forecasts from major brokerages after the NFP data:

Rate-cut estimates

(in bps)

Brokerages 2024

Dec

Morgan Stanley 25

Macquarie 25

ING 25

Wells Fargo 25

Here are the forecasts from major brokerages before the NFP data:

Rate cut estimates (in bps)

Brokerages Dec'2024 2025 Fed Funds Rate

BofA Global 25 50 3.75%-4.00% (end of

Research June)

Barclays 25 50 3.75%-4.00% (end of

2025)

Macquarie 25 100 3.25%-3.50% (through

(through June 2025)

June

2025)

Goldman Sachs 25 100 3.25%-3.50% (through

(through September 2025)

September

2025)

J.P.Morgan 25 75(throug 3.75% (through

h September 2025)

September

2025)

*UBS Global 25 125 3.00%-3.25% (through

Research end of 2025)

TD Securities 25 100 3.25%-3.50% (through

end of 2025)

Morgan Stanley 25 100 3.375% (Q4 2025)

(through

June

2025)

Jefferies 25 100 3.25%-3.50% (through

end of 2025)

Nomura - 50 4.125% (through end

of 2025)

*UBS Global Wealth 25 100 3.25%-3.50% (through

Management end of 2025)

Deutsche Bank 25 No Rate 4.375%

Cuts

Citigroup 50 - -

*UBS Global Research and UBS Global Wealth Management are distinct, independent divisions in UBS Group

(Compiled by the Broker Research team in Bengaluru; Editing by Krishna Chandra Eluri, Tasim Zahid and Shinjini Ganguli)