The Macau Monetary Authority (AMCM) said in a statement that it raised its Base Rate of the Discount Window yesterday by 25 basis points to 0.75 percent.
The discount window is the AMCM’s lending facility meant to help commercial banks manage short-term liquidity needs.
“As the pataca is linked to the Hong Kong dollar, the movements of policy rates in Hong Kong and Macau should be basically consistent in order to maintain the effective operation of the linked exchange rate system,” the statement said.
“Hence, the AMCM followed the Hong Kong Monetary Authority to adjust its Base Rate. Under the linked exchange rate system between the Hong Kong dollar and the US dollar, the related policy rate adjustment of Hong Kong was based on the policy action by the US Federal Reserve to raise the Fed funds rate target range by 25 basis points on Wednesday (US time),” the statement said.
