Macau’s base rate of the discount window has been lowered by 25 basis points to 2.25 percent, the Macau Monetary Authority (AMCM) announced yesterday.
Macau’s quasi-central bank noted in a statement that as the pataca is linked to the Hong Kong dollar the movements of policy rates in the two special administrative regions should be basically consistent, and therefore it followed the Hong Kong Monetary Authority’s (HKMA) decision earlier this week to lower the base rate of the discount window.
The discount window is an instrument of monetary policy that allows eligible institutions to borrow money from the monetary authority, usually on a short-term basis, to meet temporary shortages of liquidity caused by internal or external disruptions.
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