This undated photo shows the building of the Hong Kong Monetary Authority. (PHOTO / IC)

HONG KONG – The Hong Kong Monetary Authority kept its base rate charged through the overnight discount window unchanged at 5.75 percent on Thursday, in tandem with a US Federal Reserve move to keep rates steady.

The announcement came hours after the Fed’s Federal Open Market Committee announced following its two-day meeting that it had decided to keep the target range for the federal funds rate unchanged at 5.25-5.5 percent.

READ MORE: US Fed keeps interest rates unchanged at 5.25-5.5%

In a statement, the HKMA – the city’s de facto central bank – pointed out that the Fed's future interest rate decisions will be dependent on incoming data, the evolving outlook and the balance of risks.

The financial and monetary markets of Hong Kong continue to operate in a smooth and orderly manner. 

Hong Kong Monetary Authority

“The dot plot released after the meeting indicated that the Fed might cut rates three times for a total of 75 basis points this year, but the actual timing and the interest rate path thereafter remain uncertain and the high interest rate environment may last for some time," it added.

Hong Kong's monetary policy moves in lock-step with the US as the city's currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar.

Saying that the financial and monetary markets of Hong Kong continue to operate in a smooth and orderly manner, the HKMA added: “The Hong Kong dollar exchange rate remains stable, and the Hong Kong dollar interbank rates might remain high for some time.”

ALSO READ: HKMA raises base rate to 5.75% after Fed hike

It however cautioned that the public should carefully assess and manage the relevant risks while making property purchase, mortgage or other borrowing decisions.

HSBC Holdings said its best lending rate in Hong Kong remains unchanged at 5.875 percent.

With Reuters input