The Secretary for Economy and Finance, Mr Leong Vai Tac, speaks to reporters.
The Government is paying close attention to a recent increase in the base interest rate for Macao’s banking system, and the possible influence it could have on the city’s economy.
The Secretary for Economy and Finance, Mr Leong Vai Tac, reiterated on Thursday (22 March) that Macao’s economy was fundamentally sound and its prospects had been rated positive by a number of international bodies.
Mr Leong noted the hike of interest rate would in general terms increase the monthly financial commitment of mortgage holders, and in likelihood weaken slightly their purchasing power.
The Government was also closely monitoring the possible impact of the base interest rate increase on local small- and medium-sized enterprises (SMEs) which were likely to be affected by a weakening in the purchasing power of mainland tourists related to changes in the pataca-renminbi exchange rate.
Mr Leong said members of the public need not be worried about Macao’s economic prospects, noting the Government had currently a number of measures to support SMEs.
As Macao had now entered a cycle of rising interest rates, members of the public should take that into consideration if they wish to buy a property, start a business, or engage in commercial trade, he stated.
The Monetary Authority of Macao raised on Thursday the Base Rate of the Discount Window by 25 basis points, to 2.0 percent. It followed a decision by the United States Federal Reserve to increase its short-term interest rate. The Macao pataca is indirectly pegged to the U.S. dollar via the Hong Kong dollar.