The Hong Kong Monetary Authority (HKMA) left the base rate it charges through the overnight discount window at 5.75 per cent, after the US Federal Reserve held its rates steady.

The Fed ended its latest two-day policy meeting with a decision to hold its benchmark interest rate steady in the 5.25 to 5.5 per cent range that was set a year ago.

Federal Reserve chair Jerome Powell said, however, interest rates could be cut as soon as September if the US economy follows its expected path.

HKMA said that the city’s financial and monetary markets continue to operate in a smooth and orderly manner and the Hong Kong dollar exchange rate remains stable.

“The Hong Kong dollar interbank rates will stay relatively high for the time being, while the future rate path remains uncertain,” HKMA said.

Hong Kong’s monetary policy typically moves in lock-step with the United States, with the city’s currency pegged to the greenback in a tight range of 7.75 to 7.85 per US dollar.