As MOP is linked to HK$, increase follows Hong Kong’s adjustment based on US Federal Reserve’s move to raise Fed funds rate target range by 75 basis points.
US Federal Reserve
Monetary Authority of Macao raised rate by 50 basis points in May and another 75 basis points last month.
As MOP is linked to HK$, the movements of policy rates in Macao and Hong Kong should be consistent in order to maintain effective operation of the linked exchange rate system.
