The Monetary Authority of Macao (AMCM) raised the Base Rate of the Discount Window today (28 July 2022) by 75 basis points to 2.75%.
As the pataca is linked to the Hong Kong dollar, the movements of policy rates in Hong Kong and Macao should be basically consistent in order to maintain the effective operation of the linked exchange rate system. Hence, the AMCM followed the Hong Kong Monetary Authority to adjust its Base Rate. Under the linked exchange rate system between the Hong Kong dollar and the US dollar, the related policy rate adjustment of Hong Kong was based on the policy action by the US Federal Reserve to raise the Fed funds rate target range by 75 basis points on 27 July 2022 (US time).