Malaysia's Financial Markets Take a Break Amid Global Central Bank Decisions

Malaysia's financial markets will be closed on Wednesday for Malaysia Day, but investors will still have their hands full with major data releases and central bank decisions. The Department of Statistics Malaysia is set to release its Consumer Price Index (CPI) on September 18, with economists predicting inflation to remain at 1.8%.

The consensus forecast is unchanged from July's reading, but the trade data for August is expected to show a 37.6% year-over-year increase in exports and 32% growth in imports compared to the previous month's figures of 38.05% and 36.41%, respectively.

Abroad, several central banks are making key decisions this week. The US Federal Reserve's FOMC meeting is expected on September 17, with 64 out of 73 analysts polled by Bloomberg predicting another pause in rate hikes. UOB maintains its base case that the Fed will remain on hold throughout 2026 before resuming gradual rate cuts in 2027.

The Bank of England is also set to reveal its monetary policy rate on September 17, with UOB economist Lee Sue Ann expecting a pause due to ongoing disinflation trends and a softening labor market. Meanwhile, the Bank of Japan's (BOJ) meeting will be held on September 17/18, with UOB revising its view to expect a 25bps hike in policy rate to 1.25%.