The Monetary Authority of Macao (AMCM) lowered its key interest rate by 25 basis point to 2.0 percent at its October meeting, following its Hong Kong counterpart's move, after the US Federal Reserve cut interest rates by the same margin. This was the third rate cut this year. 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. The Hong Kong dollar is linked to the US dollar under a similar linked exchange rate system. Interest Rate in Macau averaged 2.65 percent from 2000 until 2019, reaching an all time high of 8 percent in May of 2000 and a record low of 0.50 percent in December of 2008.
Interest Rate in Macau is expected to be 2.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Macau to stand at 1.75 in 12 months time. In the long-term, the Macau Interest Rate is projected to trend around 2.50 percent in 2020, according to our econometric models.