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Market Highlights
Economic Update
Thu, 17 Sep 2026 07:32 am
US FOMC Meeting - Fed raises 25 bps; tightening cycle into 2027  

• The Fed voted unanimously to raise the policy rate by 25bps to 3.75-4.00%, supporting a timelier return to its 2.0% inflation target.
• The dot plot signals another 25-bp rate hike this year, followed by a steady rate in 2027.
• We now expect another 25-bp hike in October, followed by one further rate hike in 2027.
• While we expect BNM to raise the OPR by 25 bps in 2027, the larger increase in the Fed funds rate would put some pressure on the ringgit. We maintain our projection for USDMYR to average 4.03 this year, before moderating modestly to 4.15 in 2027.

Economic Update
Mon, 14 Sep 2026 07:24 am
Malaysia Labour Market - Steady outlook but wary of cost pressures on hiring  

• The unemployment rate held at 3.0% in July, reflecting stable labour market conditions.
• Labour market outlook remains intact, underpinned by strength in household consumption, investment and external demand.
• We remain wary of the impact of elevated cost pressures and an uncertain business operating environment on hiring momentum.
• We maintain our unemployment rate forecast of 3.0% in 2026 (2025: 3.0%).

Economic Update
Thu, 10 Sep 2026 07:19 am
Malaysia Industrial Production - Resilience amid headwinds        

• The Industrial Production Index (IPI) moderated to +4.7% YoY in July (Jun: +6.5%), below consensus of +5.6%, led by a sharp decline in mining.
• The AI-driven tech upcycle supports our broad optimism on the manufacturing outlook.
• We expect manufacturing activity to remain relatively firm in 2H26, ruling out a sharp deterioration at this juncture.
• Key downsides include a high base effect from last year, elevated producer cost pressure, uncertain US trade policy and haze conditions.
• We keep our 2026 manufacturing growth forecast at +6.2% YoY (YTD: +6.5%; 2025: +4.5%).

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Currency Buy Rates (RM) Sell Rates (RM)
USD 4.071829 4.100395
EUR 4.715419 4.720186
CNY 0.608798 0.609416
HKD 0.519063 0.522709
SGD 3.197837 3.220412
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