The Hong Kong Monetary Authority kept its base rate unchanged at 4.75 percent on Thursday, following the United States’ Federal Reserve’s decision to hold interest rates steady.  

The base rate is determined by taking the higher of two figures — 50 basis points above the lower end of the target range for the Fed funds rate, or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates.

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The Fed wrapped up its policy meeting leaving its target range unchanged at 4.25 to 4.5 percent. This marks the fourth consecutive time the Fed has kept rates unchanged, maintaining this level for six months since its last rate cut in December.  

Fed policymakers signaled that they still expect to cut rates twice this year. However, uncertainty remains over how US President Donald Trump’s economic policies might impact growth and inflation in the months to come.

Contact the writer at irisli@chinadailyhk.com