Hong Kong Central Bank Leaves Rate Unchanged

(RTTNews) - The Hong Kong Monetary Authority decided to keep its benchmark rate unchanged on Thursday following the policy announcement of the U.S. Federal Reserve a day earlier.

The base rate was retained at 5.75 percent, in tandem with the decision of the Federal Reserve.

The Fed has left the target range for the federal funds rate unchanged at 5.25-5.5 percent on Wednesday.

Hong Kong keeps its monetary policy in lockstep with the Fed in order to preserve the currency's peg to the US dollar.

The HKMA said it is premature to conclude whether the US rate hike cycle has been completed, and the high interest rate environment is likely to last for some time.

"The public should carefully assess and manage the relevant risks when making property purchase, mortgage or other borrowing decisions," HKMA said. The central bank said it will continue to closely watch market developments and maintain monetary and financial stability.