The Macau Monetary Authority (AMCM) today announced a 0.75 percent increase in key reference rates, following the increase announced by the Federal Reserve Board on Wednesday.
AMCM has set the base interest rate on the discount window to 2%. This is the amount that financial regulators in the China region charge banks for short-term capital injections.
The de facto regional central bank said the rise is inevitable because Macau’s currency, Pataca, is linked to the Hong Kong dollar. It had to be “basically consistent”. Rate system “.
The AMCM decision was made after the Hong Kong Monetary Authority today announced that the reference rate would rise by 75 basis points to 2% due to a hike by the US central bank.
The Hong Kong dollar is indexed to the US dollar.
After the announcement, the Hong Kong Stock Exchange started the session lower, with the main index, the Hang Seng Index, falling 0.47% by 10 am.
On Wednesday, the Fed announced a 75 basis point rate hike to stop rising inflation. This is the third rate hike since March and the largest rate hike since 1994.
Major benchmark interest rates in Macau and Hong Kong are still the beginning of a pandemic since February 2020 and are at their most targeted levels.