As Macau's pataca is pegged 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," Macau's de facto central bank said in a statement.
Hence, the statement noted, the AMCM followed the Hong Kong Monetary Authority (HKMA) 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 last night's (local time) policy action by the US Federal Reserve to raise the Fed funds rate target range by 75 basis points.
According to Investopedia, the Discount Window is a central bank lending facility meant to help commercial banks manage short-term liquidity needs.
The pataca (ISO code: MOP) is Macau's sole legal tender, while the Hong Kong dollar is also widely in circulation as its customary tender, namely in tourism, gaming and the property sector.
The pegged rate stands at MOP1.00 to HK$0.97. US$1 amounts to around 8 patacas.
