The Macau Monetary Authority (AMCM) – Macau’s quasi-central bank – said in a statement yesterday that it has raised its base rate by 25 basis points to 5.25 percent.
Its Hong Kong counterpart yesterday also raised its base rate to 5.25 percent, just hours after the US Federal Reserve had announced a 25 basis point rate increase in Washington, DC.
A brief AMCM statement pointed out that under its linked exchange rate system, Macau’s base rate is set at par with Hong Kong’s base rate, which is either 50 basis points above the lower end of the target range for the US Fed funds rate or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates, whichever one is the higher.
