On Thursday, the Hong Kong Monetary Authority (HKMA) opted to maintain its overnight discount window base rate at 5.75%, aligning with the decision of the US Federal Reserve to keep interest rates steady.

On Wednesday, Fed Chair Jerome Powell said that despite recent high inflation, the fundamental "story" of gradually alleviating price pressures in the US remains unchanged. He affirmed the central bank's commitment to three interest rate cuts this year and affirmed that strong economic growth is expected to persist.

The HKMA said the Federal Reserve may slash rates three times in 2024 for a total of 75 basis points. However, the timing and subsequent interest rate trajectory are still uncertain, and the environment of high-interest rates may continue for some time, Reuters news agency reports.

"The financial and monetary markets of Hong Kong continue to operate in a smooth and orderly manner," according to a statement by the Hong Kong Monetary Authority.

"The Hong Kong Dollar exchange rate remains stable, and the Hong Kong Dollar interbank rates might remain high for some time. The public should carefully assess and manage the relevant risks when making property purchase, mortgage or other borrowing decisions."

The statement went on to add: "The HKMA will continue to closely monitor market developments and maintain monetary and financial stability."

According to HSBC Holdings, its best lending rate in Hong Kong is still the same at 5.875%, the Reuters report goes on to say.

Hong Kong's monetary policy closely mirrors that of the United States, given that the city's currency is pegged to the US Dollar within a narrow range of 7.75-7.85 per Dollar.