The Macau Monetary Authority raised its base rate by 25 basis points to 4.25% on September 17, 2026, in line with the move by the Hong Kong Monetary Authority, after the US Federal Reserve implemented a widely expected 25-basis-point increase on September 16. This was Macau’s first interest rate hike since July 2023.
The decision comes against a backdrop of moderating economic momentum and cooling price pressures. Macau’s GDP grew just 0.3% year-on-year in the second quarter of 2026, a sharp slowdown from the 7.1% expansion recorded in the first quarter. Meanwhile, inflation eased for the second consecutive month, reaching 1.12% in July 2026.
Under Macau’s linked exchange rate system, the base rate is aligned with Hong Kong’s base rate, which is typically set 50 basis points above the lower bound of the target range for the US federal funds rate.
