Global Markets on High Alert as Central Banks Meet

The upcoming week promises to be eventful in both local and global financial markets. In Malaysia, several key economic indicators are set to be released, including the Consumer Price Index (CPI) on September 18 and monthly external trade statistics for August.

Economists expect inflation to remain steady at 1.8% year-on-year, unchanged from the previous month's reading. Meanwhile, exports are forecasted to grow by 37.6% year-over-year in August, while imports are expected to increase by 32%, according to consensus estimates.

Abroad, several central banks will be making important monetary policy decisions this week. The US Federal Reserve's main policymaking body, the Federal Open Market Committee (FOMC), is expected to announce its decision on September 17. A majority of analysts polled by Bloomberg anticipate another pause in rate hikes, while some expect a 25-basis-point increase.

The Bank of England and the Bank of Japan are also set to reveal their monetary policy rates this week. UOB economist Lee Sue Ann expects the Bank of England to pause its rate hike, citing ongoing disinflation trends and a softening labour market. In contrast, UOB has revised its view on the Bank of Japan's policy rate, now expecting a 25-basis-point increase.

In other regions, China will release its August monthly data on September 15, including industrial production growth and property investments year-to-date. India's Wholesale Price Index will be available on September 14, while New Zealand's second-quarter gross domestic product will be released on September 17.