Macau Monetary Authority reduces rediscount rate to 1.50%

5 March 2020

The Macau Monetary Authority (AMCM) on Wednesday reduced the rediscount rate by 50 basis points to 1.50%, the institution said in a statement issued on Wednesday.

The statement added that the AMCM had followed the lead of the Hong Kong Monetary Authority in the adjustment of the interest rate.

The adjustment of the interest rate, in Hong Kong, was also the result of indexing the Hong Kong dollar (HKD) to the US dollar (USD), in that the US Federal Reserve made the decision, on 3 March 2020 to reduce the indicative interest rate by 50 basis points.

The AMCM recalled that the uniformity of the evolution of interest rate policies stems from the fact that the pataca (MOP) is indexed to the Hong Kong dollar (HKD), and the measure taken is intended to safeguard the effective functioning of the MOP to HKD indexed exchange rate. (macauhub)