More than 130 applications for the “Plan for Granting Financial Support for the Scrapping of Obsolete Motorcycles and their Replacement with New Electric Motorcycles” have been received by Environmental Protection Bureau (DSPA). Last month, DSPA announced that it will offer motorcycle owners MOP3,500 in compensation for each eligible motorcycle that is replaced by a new electric version. The government is aiming to remove a high number of these motorcycles – most of which run on two-stroke engines – from the streets, because they account for a significant share of air pollution in Macau according to the DSPA.
Base Rate of Discount Window raised to 0.75%
The Monetary Authority of Macao (AMCM) raised the base rate of the discount window yesterday by 25 basis points to 0.75%. As the pataca is linked to the Hong Kong dollar, the movements of policy rates in Hong Kong and Macau should be consistent in order to maintain the effective operation of the linked exchange rate system. Hence, the AMCM followed the Hong Kong Monetary Authority to adjust its base rate. Under the linked exchange rate system between the HKD and the USD, the related policy rate adjustment of Hong Kong was based on the policy action by the US Federal Reserve to raise the federal funds rate target range by 25 basis points on Wednesday.
