Macao Interest 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.