The Macau Monetary Authority (AMCM) on Monday, 16 March 2020, reduced the rediscount rate by 64 basis points to 0.86%, for the second time this month, according to official information.
The need for the measure was justified by the indexation of the pataca (MOP) to the Hong Kong dollar (HKD), and with the purpose of safeguarding the effective functioning of the exchange rate regime indexing the MOP to the HKD, keeping the evolution of interest rate policies uniform.
Thus, the AMCM is accompanying the Hong Kong Monetary Authority (HKMA) in the adjustment of the interest rate.
The adjustment of the interest rate, by the HKMA, based on pre-set formulas, 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 15 March 2020 to reduce the indicative interest rate by 100 basis points.
The AMCM announced last Wednesday it had reduced the rediscount rate by 50 basis points to 1.50%, following the decision by the HKMA to adjust the interest rate. (macauhub)