Macau Hikes Base Rate to 4.25% after Fed Move

The Macau Monetary Authority lifted the base rate by 25 bps to 4.25% on September 17, 2026, mirroring the decision of its Hong Kong counterpart after the US Federal Reserve delivered the expected 25 bps hike on September 16. It was the first interest rate hike since July 2023 in the Chinese special administrative region. The move comes amid easing GDP growth and slowing inflation. The latest data showed that Macau’s economy grew 0.3% year-on-year in Q2 2026, slowing sharply from a 7.1% expansion in Q1, while inflation eased for the second straight month to 1.12% in July 2026. Under the linked exchange rate system, Macau’s base rate is set at par with Hong Kong’s base rate, which is typically 50 basis points above the lower end of the target range for the US federal funds rate.

The Macau Monetary Authority slashed its base rate by 25 basis points to 4% on December 11, 2025, following the move by the Hong Kong Monetary Authority (HKMA) after the US Federal Reserve cut interest rates. It was the third rate cut this year in the Chinese special administrative region, bringing borrowing costs to their lowest level since October 2022. The decision came amid moderating unemployment, which fell to 1.7% in October, the lowest since January. Meanwhile, GDP grew 8% year-on-year in Q3 2025, the strongest expansion since Q1 2024. However, the annual inflation rate accelerated to 0.6% in October, the fastest pace in 14 months. Under the linked exchange rate system, Macau’s base rate is set at par with Hong Kong’s base rate, which is typically 50 basis points above the lower end of the target range for the US federal funds rate.

The Macau Monetary Authority lowered its base rate by 25 basis points to 4.25% on October 30, 2025, mirroring the move by the Hong Kong Monetary Authority (HKMA) after the US Federal Reserve cut interest rates. It was the second rate cut this year in the Chinese special administrative region, bringing borrowing costs to their lowest level since November 2022. The decision came amid elevated unemployment despite robust GDP growth. Recent data showed that Macau’s jobless rate held at 2.0% in August, the highest since March 2024. Meanwhile, GDP grew 5.1% year-on-year in Q2 2025, the strongest expansion since Q2 2024, rebounding from a 1.3% contraction in Q1. However, the annual inflation rate accelerated to 0.47% in September, the fastest pace in eight months. Under the linked exchange rate system, Macau’s base rate is set at par with Hong Kong’s base rate, which is typically 50 basis points above the lower end of the target range for the US federal funds rate.