On Thursday, the Hong Kong Monetary Authority (HKMA) decided to keep its base rate at 4.75%, in line with the US Federal Reserve's decision to hold rates steady.

Following this, major banks also kept their rates unchanged, with HSBC maintaining its best lending rate in Hong Kong at 5.25%, and Standard Chartered Bank keeping its Hong Kong Dollar best lending rate at 5.5%.

Bank of China (Hong Kong) also held its Hong Kong Dollar prime rate steady at 5.25%.

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 narrow range of 7.75-7.85 per Dollar.

The US Federal Reserve kept its benchmark overnight interest rate steady at 4.25%-4.50%, while maintaining its projection for two quarter-point rate cuts by the end of the year. The Fed also projected slower economic growth and higher inflation, Reuters news agency reports.

“Interest rates in Hong Kong might still remain at relatively high levels for some time, and the extent and pace of future US interest rate cuts are subject to considerable uncertainty,” according to a statement by the HKMA published on Thursday.

Furthermore, the HKMA advised that the public should carefully manage interest rate risks when making decisions related to property purchases, mortgages, or other borrowing.

It also noted that Hong Kong’s financial and monetary markets have continued to function smoothly and in an orderly manner, with stable market liquidity conditions and a steady Hong Kong Dollar exchange rate.