Following another US Federal Reserve Covid-19 linked sudden cut, the Monetary Authority of Macao (AMCM) today lowered the base lending rate for the second time this month by 64 basis points to 0.86 per cent.
The US Fed decided that due to fears that the Covid-19 epidemic could lead to a recession in the US and global economies it would cut the benchmark interest rate by a full percentage point to near zero at 0.25 per cent, the lowest since the 2008 financial crisis.
Under the linked exchange rate system between the Hong Kong dollar and the US dollar, the Hong Kong Monetary Authority also lowered its Base Rate to 0.86 per cent, with the Macau pataca following suit.
The US Fed Fed Chairman Jerome Powell predicted that the Covi-19 pandemic was expected to greatly impact second quarter US growth, prompting fiscal policy measures and pledging to boost bond holdings by at least US$700 billion.
