HONG KONG – The Hong Kong Monetary Authority (HKMA) left its base rate unchanged at 4 percent on Thursday after the US Federal Reserve kept interest rates steady in its first meeting under its new chairman, Kevin Warsh.

The US policymakers were split on whether they expect to raise rates this year, and Warsh himself declined to submit a forecast.

Following the fourth meeting of the year, the Federal Open Market Committee of the Federal Reserve announced its decision to keep the target range for the federal funds rate unchanged at 3.5 percent to 3.75 percent.

“The policy decision is in line with market expectations. The statement released after the meeting indicated that inflation has remained elevated, reflecting that the committee is watchful over the outlook on inflation,” the HKMA said in a statement on Thursday morning.

Pointing out that US interest rate adjustments will depend on developments in inflation, the labor market and other economic data, the HKMA said these may influence the interest rate environment in Hong Kong.

“The public should carefully manage interest rate risks when making decisions about property purchase, investment or borrowing,” reads the statement.

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Under the Linked Exchange Rate System, Hong Kong dollar interbank rates generally track the US dollar counterparts, while shorter-tenor interbank rates tend to be also influenced by the supply and demand of Hong Kong dollar funding in the local market, such as seasonal factors and capital market activities.

The city’s monetary and financial markets have continued to operate in an orderly manner, according to the HKMA.

In the latest rate cut, the HKMA lowered its base interest rate by 25 basis points to 4 percent on Dec 11 last year, shortly after Fed officials delivered a third consecutive interest-rate reduction and the final one for the year.

Warsh, who took over as Fed chief last month, made an immediate imprint in organizing a unanimous consensus around a stripped-down policy statement that jettisoned any forward guidance on what actions the central bank might take in the near term, although new quarterly projections, eschewed by Warsh himself, showed nine of 19 policymakers now anticipate a rate hike by the end of 2026.

"I can't give you any forward guidance about what we're going to do next," Warsh said. "The good news is we'll be meeting in six weeks," a refrain that may become his calling card when asked about the future.

With inputs from agencies