The Hong Kong Monetary Authority (HKMA) kept its base rate the same via the overnight discount window at 5.75% on Thursday, following a move by the Federal Reserve to keep rates unchanged.

Indeed, the US central bank kept interest rates unchanged on Wednesday and suggested that rate cuts might not begin until as late as December. Policymakers outlined their perspective of a US economy that is expected to remain stable in its key aspects for the foreseeable future, Reuters news agency reports.

“With recent economic data showing mixed signs and inflation remaining high, when the Fed will start cutting interest rates is still uncertain,” according to an HKMA statement, going on to add that high interest rates may remain in place for some time.

Furthermore, the Hong Kong Monetary Authority said that Hong Kong's financial and monetary markets continue to function smoothly and orderly, with the Hong Kong Dollar exchange rate remaining stable.

“The Hong Kong Dollar interbank rates might remain high for some time,” HKMA stated, with the public being urged to carefully evaluate and manage the associated risks when making decisions about property purchases, mortgages, or other borrowing.

In addition, HSBC Holdings announced on Thursday it had held its best lending rate in Hong Kong at 5.875%.

Hong Kong's monetary policy aligns closely with that of the United States as the city's currency is pegged to the US Dollar within a tight range of 7.75-7.85 per Dollar.