The Monetary Authority of Macao (AMCM) lowered the Base Rate of the Discount Window today (16 March 2020) by 64 basis points to 0.86%, which was the second time for the AMCM to lower the policy rate within this month.  

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.  As a result, the AMCM followed its Hong Kong counterpart to adjust its Base Rate. Under the linked exchange rate system between the Hong Kong dollar and the US dollar, the Hong Kong Monetary Authority lowered its Base Rate according to a pre-set formula, in response to the policy action by the US Federal Reserve to lower the Fed funds rate target range by 100 basis points on 15 March 2020 (US time).